Owning a home is a dream for many people. You have the opportunity to invest in a place of your own and build equity, not to mention carveÂ out a space that reflects who you are and what you love.
However,Â worries about down payments, property taxes, maintenance, and insurance (and student loans) can make buying a home seem like wishful thinking, which is why you may prefer to rent a home or apartment.
But is renting cheaper than buying a home? There are more than just financial costs to consider. Letâ€™s discussÂ the advantages and disadvantages of renting.
As a renter, youâ€™re paying hundreds of dollars a month to live in your community, and if you want to move, itâ€™s much easier. But renting a home doesnâ€™t offer you investment opportunities.
Unlike paying off your home loan and building equity, the money you pay when you rent goes straight to the property owner or manager.
You Donâ€™t Build Credit When You Rent
As this recentÂ ForbesÂ article explains, your credit score often does not factor inÂ your on-time monthly rent payments, so renting a property is not a great way to build credit.
You Cannot Customize Your Living Space
There may be rules and regulations in your rental community that prevent you from changingÂ your space to fit your style, such as painting the walls or upgrading the kitchen. These rules may also prevent you from living with a pet.
Owning a home means you canÂ create your own space (with your choice of countertops and kitchen cabinets), you can invest in home improvements, and you can live with your furry companion.
You Have a Harder Time Connecting with Your Community
Forming deep connections with your neighbors is likely not high on your priority list if youâ€™re a renter, especially when you consider that you will only be living in the community for a short time.Â If you desire to get to know your neighbors, homeownership is a better option.
Renting gives you flexibility andÂ little maintenance to worry about. Buying a home is a long-term investment that gives you a space you can customize, helps you build credit and equity, and connects you with your community.
We want to help you make the best decision, and we have important real estate market resources that you can use to help you decide if renting is cheaper for you than buying a home.Â Just give us a call and we can talk about your plans.