Buying is better than renting. You’re going to hear that repeatedly. It’s so woven into the fabric of who we are as a society that most of accept it as being true without giving any real thought to it. Unless the mortgage is a whole lot more expensive than rent for a similar place, we figure that we’re better off buying a home. We don’t even generally stop to consider the difference in price between such peripheral expenses as renters insurance and home owner’s policies.

So, is buying really better? It really depends on who you are and what’s important to you. There are some very real advantages to buying over renting, including:

  • You build equity. Of course, you need to stay in one place for at least seven years to build enough to make it worthwhile.
  • Your payments will stay level. Unless you have an ARM mortgage, of course. It is true that rent will go up over the course of time in most cases.
  • You can sell your home for a profit. OK, really? Have you been sleeping the past five years? Sure, housing prices will go up again. Or will they? How do you know they’ll be up when you want to move?

Renting has some advantages of its own. The most significant one is greater freedom. After your initial lease, which can be as little as six months to a year, you can rent month to month, meaning that you can leave virtually anytime you want, without penalty. Try walking away from a mortgage like that and see what happens. Can you say “bad credit?” We knew you could.

Here are some of the other benefits of renting over buying:

  • You can often afford better amenities. You might not be able to afford a swimming pool yourself, but most apartment complexes have them.
  • When something breaks, the only tool you need is the telephone. That’s right, one phone call, and your maintenance needs are someone else’s problem.
  • If the place becomes unlivable, you have legal recourse. The law is behind you if you leave an apartment because the landlord doesn’t keep the place up. When you buy, you would need to prove the seller knew what was wrong with the place before you could recoup damages from nondisclosures. Good luck with that.
  • Associated costs are lower. Renters insurance costs less than homeowners. Utilities are often cheaper in an apartment. Things like cable TV are often thrown in free.
  • You can move when you want to. If you really like staying in the same place for years on end, knock yourself out. Buy a house. But if you’d rather have an occasional change of scenery, you might want to consider renting instead.

Similar Posts:

Share