Should I Rent or Buy?
When it comes to your future home, one of the biggest questions you may face is whether you should rent or buy. While there’s no right answer, there are advantages and disadvantages to both. Between your lifestyle, financial situation, and employment status, there are many factors that can affect your decision to either buy or rent your next home. Whether you embark on this journey on your own or get the help of a trusted real estate professional, you’ll be glad you researched your options before making a decision!
If you are located in the DC, Maryland, or Virginia area and are looking for help as you decide whether to rent or buy, contact the team at Coakley Realty today!
The Pros & Cons of Buying a Home
As a homeowner, you are responsible for a great deal—but you also have a lot of freedom! That alone may make the decision for you, but if you’re still not sure if buying is the right route for you, there are a variety of positive factors you should consider, including:
- The ability to make your home yours. When you buy your own home, a certain liberty comes along with it. Because the space is your property, you have the freedom to do with it what you please. On the other hand, if you were to rent, you can’t change much.
- An absence of payment hikes. A mortgage tends to have a fixed rate. In other words, when you agree to the terms of your mortgages, it is highly unlikely that the conditions to which you are agreeing will change!
- The ability to build equity. Every time you make a payment towards your home, you earn equity in your home. As the price of your home appreciates, your mortgage goes down as your equity steadily increases.
Of course, there are also some factors you should consider before committing to the purchase of a home, including:
- The cost. When you buy a home, you’ll need money for the down payment. In fact, it’s common that the mortgage company will expect a minimum of 3% to 5% of the cost of the home upfront—traditional mortgages may require 20% or more.
- The responsibility you’ll have as a homeowner. Because it’s you name on the deed, you are responsible for your property. Between providing landscaping, hiring heating and cooling services, and fixing damages in and around your home, there is a great deal that you will be in charge of!
The Pros & Cons of Renting a Home
As you weigh your options, renting presents a variety of positive and negative attributes, too! Overall, there are some great pros to renting:
- It’s easy to move on. As soon as your lease expires, you are able to move on. In fact, this is one of the main reasons one might rent a home rather than buy it. However, if you are planning on staying somewhere for a while, it may be smarter to buy so you can earn equity.
- You have less maintenance responsibility. When you rent, your maintenance and repair issues are up to your landlord or property management company.
On the other hand, here are some factors to keep in mind while considering renting:
- Rent can be increased. If you are living in a popular and high-growth area, your rent could easily rise—which may leave you struggling to plan your living situation once your lease expires.
- Your lease will have a deadline. When you sign your lease, you’ll likely have a deadline. In other words, once your lease is up, you may not be able to renew it.
- No equity. Because every rent payment goes to your property management group or landlord, you won’t have any direct ownership of the property—this means you won’t get any equity.
Buy or Rent With Coakley Realty in the MD, VA & DC Area
Whether you decide to rent or buy, Coakley Realty offers trusted realty and property management services in the Maryland, Virginia, and DC area. To learn more about how we can help you either buy or rent a home, contact us today!
