Finding a new place to live can be extremely stressful as well as trying to decide if you want to buy or rent. There are some major differences between the two. This article will help to determine the main differences between both. These differences were going to separate into different categories.
The first category and probably the most important is motivation. What’s your reasoning to move? Moving out on your own? Growing a family? Found a new job? Typically people who are looking to create roots and/or start a family want to buy. If you’re not at the point in your life then lost people rent.
Starting out, buying requires more money put down. Typically around 20% give or take is required. You then also have your monthly mortgage cost. With renting, you have to put down a much smaller amount to start. Most places will also give that amount back if you leave the apartment in good condition when you decide to move out.
With renting, the amount of bills you have can fluctuate. Some landlords do pay for some of the utilities. This can change depending on where or who you rent from. When it comes to paying for the place generally speaking you will always pay rent. Every month, no questions asked. When you buy, you have to take care of all of the utilities yourself however, you can pay off your mortgage which then eliminates that month bill altogether.
Length of Time
This can correlate with your motivation. If you plan to stay longer than five years then buying, most people say, is an option. However, it is commonly recommended that if you plan to stay no longer than five years, you should rent.
When renting you have the freedom to move whenever your lease is up. Fairly simple and easy, there’s no long term commitment there. Some places available for rent can also be rented month by month or for any amount of time you need. This isn’t always an option, some places require you to have a year lease, no more, no less. When buying it is a lot of commitment. You’re committing your life to that location, that down. The act of moving is also a huge commitment. It’s not a simple task that should be taken lightly. Buying is a lore permanent answer then renting.
There is a level of risk that comes with both renting and buying. With buying, the home owners can face financial risks. Renters have the risk of the landlord increasing their rent or even selling the building which then forces you to move out.
When buying a home, you will have the potential to have emotional and even a financial security with the home. This can be long term but overall the home will be special to you and your family. With renting you have the reward of mobility. You can invest your money into other things instead of into your home.
Also, Don’t Forget
When you buy a home you are responsible for all repairs, damages, renovations, etc. When you rent your landlord is responsible for all maintenance responsibilities. Sometimes you may come across someone who will let you make updates to the rented location yourself however, whenever you move you lose that money and time you put into it.
Clearly there are some major differences between buying or renting. This website, theurbanavenue.com, is a great website that helps those in the Dallas area in finding a place to call their new home.