Buying vs Renting - Which is Best for Your Situation?

Deciding to rent or buy a house can be intimidating. Whether you’re looking for stability in your living situation or you’re ready to start the journey of homeownership, we need to break down all the key factors. Let’s guide you through this crucial decision-making stage so that together we can find what works best for YOU — because after all, home is where life happens.

 

Owning a Home: Pros & Cons

Buying a home is commonly considered one of the most important steps in life for anyone. Let us guide you through what can come along with buying a house and how that could end up being the best choice.

 

Pros of Owning a Home

Tax Advantage

Homeownership offers more than just a place to call your own; it can be a smart purchase for many. With the potential ability to deduct a portion of interest paid on mortgages for primary residences from taxes each year, homeowners can cash in big with this savvy financial decision. Instead of watching rent money evaporate into thin air each month, homeowners could put those funds towards savings and take full advantage of all that buying a home has to offer.

 

Payment Stability

With a fixed mortgage, you'll enjoy the security of knowing your monthly payments likely won’t change over time. Instead of worrying about rising rents without any say in the matter, you could purchase something with a relatively stable price that’s all yours.

Pride of Ownership

Becoming a homeowner can feel like one of the greatest rewards in life. With that privilege often comes the freedom to express yourself however you choose: paint an accent wall, hang pictures and artwork wherever your heart desires, and have fun playing with the latest design trends in your very own home.

 

Cons of Owning a Home

Longer To-Do List

Owning your own home may seem intimidating. You can’t just dial up a landlord whenever something isn't working quite right. Becoming an owner means taking on the responsibility of regular maintenance and upkeep. But with some thoughtful preparation and care, there are plenty of ways to make sure it will keep looking lovely and functioning properly for years down the road.

 

Harder to Relocate

Relocating frequently can be difficult with homeownership. There are costs tied to buying a house, like closing and commission expenses, that would be wasted if you were on the move again within a couple of years. It's likely not worth it for someone who doesn't plan on settling down for at least three years. If your lifestyle involves hop-scotching around town, you may want to keep renting to save yourself some time and money.

 

Additional Costs

When you purchase a resale home specifically, remember that there could be extra costs associated with upgrades and repairs. From roof replacements to electrical or plumbing repairs, take the time to do your due diligence before investing in an older abode. After closing on a resale home, you might also want to think about which upgrades will make life easier or fit your vision of your dream home, like countertop transformations or smart home automation features. Purchasing a new home–a new construction home to be precise–might prevent some surprises later.

When you purchase a new construction home, you’ll likely encounter fewer of these unexpected costs that come with buying a resale home because you get the opportunity to personalize your home in advance and have the peace of mind that comes with a limited home warranty.

 

Renting a Home: Pros & Cons

Renting a home can be an ideal solution depending on your financial circumstances. But is this option always financially savvy? Let's explore what factors come into play when deciding between these two choices.

Pros of Renting a House

No Big Commitment

With renting, you can experience the joy of exploring without rushing into a commitment. It's an amazing opportunity to get familiar with your new town and hunt for that perfect neighborhood fit before deciding whether or not to buy.

 

Can Be Less Expensive

If you're looking for a way to keep your costs low, consider renting a smaller place — even if only for the short term. While there, it's the perfect time to get creative and plan ahead. You can explore all of your options while saving up funds toward an eventual down payment on that dream home.

 

Easier to Relocate

If you're a wanderer by trade, whether the job takes you across town or another continent, selling a home can be an arduous task. But when it comes to renting, moving is often much more straightforward.

 

Cons of Renting a House

Privacy

If having someone just inches away or tap dancing over your head isn't quite the cozy home life you imagined, it might be time to start to make your dream of owning your own home come true. That way, not only will you get more privacy but you’ll also have a purchase that tends to pay off in spades.

 

Pet Restriction

If you’re a pet lover, it can be hard to find the perfect rental between dog breeds that get a bad rep or restricted pet policies in general. In that case, owning your own home has its advantages. You'll get the benefit of having plenty of space for pups to run around, plus all those cozy corners just waiting for your cat to curl up in.

 

Rent Hikes

The rental market isn't for everyone as rent prices can be a moving goalpost from year-to-year and month-to-month; knowing exactly how much you’ll pay for your home makes investing in a property worthwhile. When you buy a home, you get to decide how much house fits within your budget, and the stability of locked-in payments gives you peace of mind.

The choice of owning a home or renting a house is up to you and your situation. Ultimately, whichever one is the best option for you will help provide reassurance and security as you progress through life. Homeownership offers amazing opportunities, and if buying a home is right for you, then it's worth the purchase. With all that being said, there are pros and cons to both options so make sure you weigh them out and make an informed decision. One step that may help you decide is exploring Pulte’s new home communities today.

 

For more design tips, local attraction guides, and homeowner lifestyle articles, check out the Pulte Homes blog for inspiration.

 

Contributed by Carol Youmans