Is It Better To Rent Or Buy?
Is It Better to Rent or Buy?
If you’re moving to Chandler, AZ or relocating within the area, you’re likely faced with the decision about renting versus buying. They both have perks and they both have negatives, but a lot depends on your personal situation and preferences. Here are some of the biggest considerations to keep in mind when deciding whether it is better to rent or buy.
Of course the biggest consideration is price. A mortgage payment will likely be significantly lower than a rent payment, but a home does come with many additional costs, including a down payment, closing costs, homeowner’s insurance, taxes, maintenance, and broker fees. While some of those costs can be pricey, most of them are taken care of initially and aren’t something you need to worry about in the future. The biggest financial perk of buying as opposed to renting is that your monthly mortgage payment will never change. Renters often find themselves having to relocate because a landlord increased the rent so much that they can’t afford to stay put.
Renting typically requires a security deposit and up to 3 months rent. While you don’t have to pay taxes or for maintenance or repairs, you’re gaining no equity from renting. At the end of your rental period, you’ll have nothing to show for the time you lived there.
Looking into the future, the return for the home can be very large should you decide to sell it. Even if your home’s value does not increase significantly, you’ll have some equity to put towards purchasing another house. Additionally, if you decide to stay in that home after you pay off your mortgage, you’ll be living with substantially lower monthly costs. While the upfront cost of buying may be higher, in the long-term, you will gain so much more than if you simply rent a house.
How long do you plan on staying in this new place? If you’re renting a 2-bedroom house and you plan on starting a family soon, you’ll likely grow out of that space fairly quickly.
If you plan on staying somewhere for a long time, buying tends to be a better option because your investment will go farther and your upfront fees can be spread across several years. If you buy a house with the intent to grow your family and to really make a home for yourself, you will find yourself thankful that you purchased a house that could become a part of your family’s memories.
Overview of Renting
Some of the pros of renting include having no maintenance, being able to move easily, and possibly having lower costs overall. The cons include less privacy, fluctuating rent costs, lack of equity or tax breaks, and inability to paint or remodel without permission.
Overview of Buying
The pros of buying include building equity, gaining tax advantages, having stable monthly payments, enjoying a secure place to call home, utilizing creative freedom, and gaining a sense of community in your neighborhood. The cons of buying include higher initial investment, maintenance costs, and less flexibility in moving.