If you are one of the many people choosing to move to Florida, you may be struggling to decide whether you want to rent or buy a house. There are so many reasons for and against both options. It’s an overwhelming and stressful process choosing which one is best for your situation. In this article, we’ll discuss three reasons to rent and three reasons to buy. We’ll explain how it varies based on your situation and plans for the future, and you’ll hopefully leave this article with a better idea of what you should do in your particular situation.
Reasons to Rent
No Need for Maintenance or Repairs
Anyone who has owned a house knows how time consuming and expensive housing repairs can be. It seems like something is always in need of repair, whether it’s a leaky pipe, a broken outlet, or a malfunctioning garage door. When you own the house, it is entirely your responsibility to make sure that these things get repaired, costing you lots of time and money in the process. You can avoid all these problems by renting a home and letting your landlord fix the problems. Since your landlord is the owner of the property, he or she bears the responsibilities for fixing any problems, making your life much easier and less stressful.
Makes Moving Much Easier
One of the best reasons to rent instead of buy is because you are not tied to a particular location. Americans move an average eleven times. Whether you are moving to a new state or just relocating to a different neighborhood, there is a good possibility that you will move at some point in the future. In light of this possibility, it may be wise to agree to a short term rental instead of making a long term commitment and buying a house. By renting a house or apartment, you’ll have the flexibility to pack up and move if it ever becomes necessary to do so.
No Risk of Real Estate Loss
Another great reason to rent as opposed to buying is that you avoid the risk of property depreciation. While real estate generally grows in value with time, it is still possible to lose money. Property depreciation can be caused by a number of factors, including damage from harsh weather like flooding or wind, problems stemming from the structure of the house, and infestation from bugs or mold. Similar to maintenance and repairs, property depreciation is not something that renters need to worry about. Since your landlord is the owner of the property, depreciation must be paid for from the landlord’s pocket. This fact makes renting a much less risky proposition for you and is certainly something to consider when deciding whether to rent or buy.
Reasons to Buy
Great Long Term Investment
While buying a house can certainly be a financial risk and should not be a hastily made decision, it can turn into a great long term investment. Property generally appreciates in value, and if you do a good job maintaining the house, there is a very good chance you could make a significant amount of profit from your piece of real estate. However, it is important to do your research and consult with a reputable real estate agent before buying. Make sure to have the home thoroughly inspected to ensure there are no structural issues, mold infestations, or other potential problems. As long as you’ve done your research and are confident you’ll be living in the area for the long term, you can be confident that your house will be an excellent investment that you and your family can enjoy living in for years to come.
Mortgage Payments Don’t Increase
One of the biggest problems with renting a house or apartment is that your landlord can (and often will) increase your rent once your lease is up. You might be able to start off with a great deal, but these don’t usually last long as landlords are quick to raise rent whenever the opportunity affords itself. You don’t have to deal with this problem when you buy a house. Once your mortgage rate is set, that is the maximum you will have to pay each month until your house is paid off. Plus, with each and every mortgage payment, you gain a bit of equity and ownership over your house. If you have firmly decided to put down roots in a particular location and are set on staying there for the long term, buying a house will likely end up being a great financial decision, preventing the possibility of increased rental payments and allowing you to have complete ownership over your home.
Ownership
That brings us to our last reason for buying a home: ownership. When you rent a house, you do not have any control over the house. You often can’t decide how to decorate the house, you’re unable to refurbish any of the rooms, and you cannot make any additions to the house. You’re stuck with what you have. However, when you buy the house, you are its sole owner. While this comes with lots of extra responsibilities, like maintenance and repairs, you also get to decide when and if you’d like to repaint the outside of the house, build an addition onto the house, or completely renovate one of the rooms. It’s your house and you can do what you want with it.
Conclusion
In this article we discussed several reasons for why you should rent or buy a house. Renting is often a good decision for people who are not planning on staying in the area for the long term. You don’t have to take care of house repairs or maintenance items, there’s no risk of losing money due to real estate depreciation, and moving to another location is a much easier process. You simply have to wait for your lease to expire. However, buying has its own advantages. It can be a great long term investment due to the fact that real estate often appreciates in value. You don’t have to worry about increasing rent payments due to the fact that mortgage rates are set from the beginning. And, best of all, you own the house and can do whatever you want with it.
If you are considering whether to rent or buy a house, don’t hesitate to reach out. We at Meyer Garrity Group would be happy to answer any questions you have and find a house or apartment that is a perfect fit for you. Call us today and we’ll get an appointment scheduled!