Cons of Renting vs Buying

We have already covered the pros of buying a house, today, we are going to go over the cons of renting.

Renting can be great in some situations. For example, renting can give you a source of freedom when it comes to being free of maintenance and ties to the property. But when you look at the pros and cons of renting you need to weigh them against your current situation.

PERSONAL CHOICES

While renting you can’t change the place you are staying without permission from the landlord. Most of the time you won’t get that permission. You may be thinking to yourself that this isn’t really a big deal. Which sometimes it’s not, but this is usually a short-term thought process. If this is a long-term location for you will want to make the place you are staying feel like home to you. Renters usually don’t have this option. Also, you can’t make the choices on your own to get a pet, or change the carpet, or redo a bathroom.

EQUITY

When you make a rent payment each month you are paying for a roof over your head. That’s it, nothing else. When paying your mortgage payment you typically build a little more equity in your home. This acts as an investment and over time you own more and more of your house.

RENT HIKES

One of the worst things about renting is the price. To rent a roof for over your head has gotten outrageous within the last decade and continues to get worse. 88% of rentals have raised their rental prices since 2015. This means 88% of all rentals have raised their price at least one time if not more the past 2 – 3 years. Now ask a homeowner how many times their mortgage payment has gone up.

NO GUARANTEE

When you rent a house you are either set up for a year to year contract or month to month. Once that contract is over there is no guarantee that you will be able to renew your contract for another year. If you are month to month you could be kicked out at any time left to find another place to live.

OVERVIEW

We know there are advantages and disadvantages to buying and renting. The important thing to think about is what do you want and what option best fits your lifestyle. If you have any questions about buying a home we are your local, VA Loan mortgage company. Please give us a call at 360.571.LOAN (5626) or email us at GreenwaldTeam@Creeksidem.com.