Most of us grew up hearing adults tell us what a great investment owning a home is.
But is it really always a good choice to buy a home? Are there any conditions when it is better to rent instead of purchasing a home? The answer is yes, owning your own home can be a solid investment, but it is also true that purchasing a home is not always the best plan. When deciding whether to buy or rent, you should consider multiple factors, because there are pros and cons to both buying and renting.
There are several financial benefits to renting temporarily or even long-term. If you rent, you will never have to pay property taxes. You should purchase renter’s insurance, but you won’t have to buy homeowner’s insurance, which is more expensive. Also, while owning a home can be financially beneficial, it isn’t necessarily the best way to invest your money. You could choose to invest in stocks, and you might end up with more money than you would by simply owning a home for a long time.
If you do buy a home, you will have to take care of it if you want to keep your investment. You would also most likely have to hire someone to fix issues like the roof, plumbing, or other repairs. If you consider yourself handy at fixing things, then you also could choose to make the necessary changes yourself. However, if you already have a busy life or simply prefer not to tinker with household issues on your time off, then you will have to pay someone.
These are things that potential homebuyers often don’t consider: All of these issues cost money if you own your own home. If you prefer to have someone else handle most problems, escape yard care, and also avoid additional costs, you may consider long-term renting.