Renting vs. Owning: Pros & Cons
In my home state of New Jersey, two-thirds of the population owns homes while the remaining one-third rents out a space. Using this fact alone we can see that most people would prefer to own a home versus renting, but what makes owning a home better? Lets dive into some pros and cons of owning a home vs renting a home.
In the last few years landlords have been taking advantage of economic changes and charging renters more than ever. This increase in rental payments makes rentals a horrible alternative to owning a home, unless you’re staying at an apartment complex. Apartment complex’s are typically newer meaning nicer spaces and newer/cleaner amenities. This amenities are one of the few benefits that a renter would have over a home owner, ranging from a maintained pool, multiple patio/grill areas, common areas, gym facilities and many more amnesties.
On the other hand, homeowners do not have the hassle of living with other people. No need to bang on your ceiling because your upstairs neighbors don’t know the difference between night and day while you are trying to get your sleep. You have the freedom to do as you please because no one is there to stop you.
Another benefit that home owners have is that a portion of their payment (in the example of a conventional mortgage) will being going towards the actual home price. This can be looked at almost like a savings account. If the home owner ever decided to leave the home that they have been paying for over the years, they will be able to make money from th home sale and use it as they wish. For renters, all the money that they pay every month goes straight to the landlord, meaning they get nothing if they ever decide to move out.
Renting can also be scary because if your lease runs out then you can be pushed against a wall and be stuck between leaving or paying more rent. On the other hand, home mortgages are typically the same payments forever. So as long as you make the payments on time, they won’t go up, and you can stay in the home forever. This is an added security that some people tend to overlook.
Lastly, it is very convenient to own a home. You are in one place. No need to worry about moving clothes, furniture, dishwater, decorations, etc. You have everything in one place and it can stay that way for as long as you want.
Overall home ownership should be the way that everyone leans. I know not everyone is in a position to do so, that is why it is best to find somewhere very cheap to rent, save up as much money as possible, and then find a home to purchase where you can pay similar price mortgage to the rent you were paying before. Please stick around to read about some tips for buying your first home and reach out to us if there is anything we can help with!