A house. A yard. A white picket fence. This has been the traditional “American Dream” for decades – but that dream is evolving and changing in the face of new economic realities and changing preferences. This leaves us with a big question: what are the pros and cons of renting vs buying a home? Let’s take a look.


Buying a House vs Renting an Apartment or Home


What are the benefits of buying? They include:

  • You don’t have to worry about a landlord. If you want to paint your bedroom pink or swap out an appliance for a smart version, do it!
  • If you build or buy a model home, you can choose the features/functionality that are most important to you.
  • You can upgrade and renovate your home as you want/need.
  • You can build equity on which you can draw.
  • The home may appreciate in value, making it a good investment in the future.
  • The pride factor. This is yours.

What are the drawbacks of buying a house vs renting an apartment or home?

  • Your landlord won’t be there to fix a leaky sink or make other repairs. Everything from foundation to roof is on you (excluding elements covered by builder warranties, if you have one).
  • You will likely need to put down a sizable down payment.
  • You may have to pay Home Owners Association (HOA) dues and comply by their regulations.
  • It is more difficult to relocate (especially in some markets where selling can be disadvantageous).

Renting, too, offers pros and cons. On the plus side:

  • Repairs are included.
  • You don’t have HOA fees.
  • Move-in costs are lower than when you purchase a home.
  • Monthly costs may be lower.
  • It’s easier to move/relocate.

The disadvantages include:

  • You cannot make changes to the space/property.
  • Renting doesn’t help your credit score.
  • The landlord may not be on top of upgrades/repairs.
  • You’re not building equity.

And, of course, you have to look at the market. In some cases, holding off on buying a house is the smart move given prices and conditions. In others, it’s a prime opportunity to build a portfolio, start earning equity, and get your piece of the new American Dream.

Renting vs buying a home: which is right for you? It depends! We’re happy to help you go through your options. Contact us today!


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