To Rent or Not to Rent: The Pros and Cons of Renting

In life, we follow a certain path: we grow up, we get a job, we buy a home. Investing in property can be a beneficial life step, but it’s not for everyone. Before diving in and becoming a homeowner, there are a few things that you must consider. We’ve put together a handy dandy pros and cons of renting list to help you decide whether you’re ready for home ownership or if you should maintain your tenancy.

Image via Flickr by Marcin Wichary

PRO: Renting Offers Flexibility

When you rent, you’re only committed for the duration of your contract. When you buy, you’re committing yourself to your location for years to come. If you’re unsure of where you want to settle down in the next five years, think about investing in something other than real estate.

CON: Less Stability

Raised rent, eviction, and strict rules are all things that you have to worry about as a renter. As a homeowner, these worries vanish.

PRO: You Don’t Have to Worry About Maintenance

When you rent, maintenance is the responsibility of the landlord. While mortgage rates are typical lower than rent prices, a lot of that is made up for in maintenance fees. If you’re not in a place to save a significant amount of money for home emergencies, or if you don’t like the idea of having to deal with your own plumbing, then you might want to stick to a landlord.

CON: It’s Not an Investment

Often, mortgage rates are lower than rental fees. Because of this, you can get more space for the amount you currently spend on rent. Additionally, your home is an investment. As such, each month’s mortgage payment acts more as an investment into your future, unlike rent checks which are gone forever.

PRO: It Gives You Time to Build Credit

New college graduates are often tempted to buy homes, but since their student loan debt prevents them from getting the mortgage rate they desire. Renting gives you time to take care of your existing debt and build your credit so that when it’s time for you to buy, you can get the mortgage rate that you deserve.

CON: You Don’t Know What the Market Will Be When It’s Time to Buy

The thing about real estate is that it can switch from a buyer’s market to a seller’s market in an instant. If we’re experiencing a buyer’s market when your credit isn’t where it could be, you may be tempted to enter the housing market to ensure optimal prices. Investments are always a risk, and this is something you will want to consider when deciding whether to rent or buy.

While buying a home has many advantages, it’s not right for everyone. Seriously consider whether buying a home is the right step for you in this moment. If renting is more your style, our rental manager, Brian Becker, is happy to help you with one of our rental properties in Galveston.