When trying to find a home in which to live, you’ll face a significant question – do you buy a house or rent one? The housing market in the US is still intense, so many individuals and families are looking at that question to figure out which option works best for them.
If you’re facing that kind of decision, it helps to break down the advantages and disadvantages of owning or renting a home. Fortunately, we’ve done the hard work for you, so let’s dive into those differences.
Cost of Living
The price is the first thing you’ll likely pay attention to when looking at new homes. When buying a house, you will probably use a mortgage lender to pay for the property. However, even with a lender, you’ll also have to make a down payment, which can be around three to five percent of the purchase price.
You’ll be looking at at least $15,000 to $20,000 for a down payment (depending on your market) and a mortgage payment that could fluctuate if you have a variable interest rate.
When renting a house, you’re signing a lease, meaning you agree to pay the landlord a set amount each month. Once the lease expires, you can renew it or leave the property. Typically, rents go up during renewal, but the amount depends on different variables.
Overall, a mortgage payment can be less than monthly rent because you’re not getting extra incentives like repairs and utility bills set into the price. However, you’re locked into a mortgage for about 25 to 30 years, whereas a lease is typically only for one year.
Application and Approval Process
Whether you’re looking to rent or buy a house, you’ll have to submit to a credit and background check. Landlords and mortgage lenders want to make sure you’re going to stay on your payments.
That said, a landlord may only need a background check to have you move into the home. With a mortgage lender, approval doesn’t mean you can buy a house. It only means you’re approved for a set amount, which you can use to make an offer on a property.
In this case, buying a home is more time-consuming and requires many more steps to complete. On average, closing on a house can take up to 45 days, while you can sometimes move into a rental in a week or two.
Repairs and Maintenance
While owning a home means you’re building equity that you can leverage for a new house or other substantial purchases, you’re also on the hook for any repairs and maintenance. Yes, homeowners insurance can cover some unexpected disasters, but it won’t pay for faulty appliances or normal wear and tear.
The primary advantage of renting a house is that your landlord keeps the property in good working order. Of course, you can’t intentionally destroy something to get a new one, but if something breaks on its own, you don’t have to pay out of pocket to replace it.
Get Moving Help Today!
Whether you decide to rent or own a home, you’ll need help moving your belongings into your new property. We can take care of everything from packing to transporting so you can focus on settling in and starting the next chapter of your life. Contact us today to find out more.
If you’re facing that kind of decision, it helps to break down the advantages and disadvantages of owning or renting a home. Fortunately, we’ve done the hard work for you, so let’s dive into those differences.
more.