The Rundown: Renting/Buying Pros and Cons

    A more traditional mindset would say that it is better to own your home than to be bound by renting. However, we shouldn’t be limited by this prevalent assumption – for those who frequently travel, or for those who are thinking of staying in an area for a shorter period of time, renting would be the definite choice. At any rate, here is a quick list of pros and cons that you ought to know for each approach:

    Renting Pros:
    – More relaxed requirements to be a Tenant – Your credit rating may not be as good, but you can still rent.
    – You aren’t bound to a mortgage, so you are more flexible when it comes to your finances.
    – You don’t have to worry about general maintenance costs.
    – There is also no need to be concerned if the neighborhood depreciates.

    Renting Cons:
    – Rent is higher that mortgage payments
    – You aren’t building any sort of equity; you aren’t owning an asset – unless, you’re on a rare rent-to-own partnership.
    – There is a limit to what you can do – Renovations, Pets, etc.
    – Rent can be raised at any time; Also, if the owner decides to sell the property, that means you need to start looking for another place to live.

    Buying Pros:
    – You are obviously building equity.
    – You stand to benefit if the entire neighborhood market appreciates.
    – You have the freedom to remodel and restore as you please.

    Buying Cons:
    – Secondary costs concerning maintenance and taxes can be a hassle.
    – Your equity would definitely suffer if market prices go down.
    – More difficult to be qualified – You will need proper credit/income scores.
    – Mortgage can be overwhelming.