Learn more about the pros and cons of buying vs. renting
We often hear that renting is to be avoided and buying a home is preferable. After all, it is the American dream. While this may be true in many instances, is it always the case? Not necessarily. Below we take an honest look at the pros and cons of renting versus buying a home so you can make the most informed decision.
Short-Term vs. Long-Term
Renting is a great solution if you plan on remaining in an area for only a short time or are new to the area. Repeated moves can grow costly. Depending on where you rent, you will face hefty deposits and moving costs each time.
You can buy for a short time to help build up your equity as you go. With short-term stays, though, the time and stress involved with buying a home may not be worth it.
With renting, most maintenance responsibilities fall on the shoulders of the landlord. Aside from regular upkeep, any major work and the associated costs are not your responsibility. However, you do not have control of the timeline for repair, quality of things such as appliances, or the quality of work.
All the repairs and maintenance are your responsibility, giving you control to fix things the way you like and in a timeline that suits your schedule. This can come with hefty and unexpected price tags, however.
Renting gives you a relatively stable monthly cost, which is particularly nice for those with tight budgets. The major drawback is you do not build equity in the house and you won’t own the property.
Buying a home is a sizable investment and requires more money initially. With the added and often unexpected maintenance costs you face, along with property tax, HOA fees, and homeowners insurance, the cost of homeownership is more than just your mortgage and utilities. That being said, however, your investment in a house builds equity, and is an investment you may be able to cash out on in the future.
If you’ve decided you want to buy a home in the Northern Colorado area, reach out to Dennis Schick, broker associate for RE/MAX Alliance today. Our experienced and qualified team can help you find the perfect property at a price that fits your budget.