27 Mar Renting vs Owning
The battle of renting vs. owning has been debated among adults for decades. A winner between the two will most likely not be named any time soon, due to personal preferences. Both options provide a different peace of mind. In the end, you know which option is best for you. These tips from Bank of the Lowcountry, can help you make that decision.
Pros of Renting
Worry-Free Maintenance- If a problem pops up, you can call your landlord to handle the labor, costs, and stress of the situation. For example, if your garbage disposal stops working, your landlord will deal with fixing or replacing the issue. As a tenant, you can sit back and wait for the issue to be resolved.
Freedom to Downsize or Move- Renting provides you with the freedom to either stay in your home for another year or pack up and move to a new home. You can move to a new neighborhood, downsize your space, or upgrade your living situation as a renter.
Cons of Renting
No Tax Break- Since you aren’t paying property taxes, you can’t receive any possible tax breaks for your rental. Essentially, you’ll have to weigh if you’d prefer to pay property taxes and receive a tax deduction or not pay taxes on your home and not receive a tax deduction.
No Equity Being Built- When you rent a home, you are not building any equity or wealth creation of your own. Your rent is helping your landlord build their equity and pay off their home loan.
Pros of Owning
Creative Control- When you own a home, you are free to remodel, design and alter your home to your personal taste. With this creative control, you can help make your home more unique and add to the growth of your home when you are ready to sell it.
Building Equity and Your Credit Score- Having a home loan under your name provides you with the ability to grow your equity and making monthly mortgage payments with help your credit score grow. This growth will help you financially when making other purchases.
Cons of Owning
Maintenance Responsibility- When the garbage disposal breaks, you are responsible for fixing or replacing it. Being responsible for the maintenance of your home means that unexpected costs can obscure your monthly budget.
Risk of Profit- The housing market can often be questionable. When it comes time to sell your home, it may be hard to know if you’ll make a profit on the home you’ve poured so much money and hard work into.
Only you can know if owning or renting is right for you. Like any life decision, weighing the pros and cons is one of the best ways to help you make the right decision. Never rush into buying a home until you’re financially sound to cover all the costs. Contact Bank of the Lowcountry for further questions, tips, and advice to help the process run smoothly.
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