The Right Choice: Renting vs. Buying after Selling Your Home
After you’ve sold your home, will you buy another home or rent? Renting vs. buying is a significant decision, but thinking through the pros and cons of each option can help you make the best choice for the next stage of your life.
Renting is a great option for many reasons. It’s cheaper than buying a home. You don’t have to worry about earnest money, appraisals, and inspections when you’re renting an apartment. The whole process is simpler and easier. Plus, it’s more flexible with your future plans, as you haven’t committed for very long when you chose the apartment. Besides fewer up front costs, renting also is cheaper to maintain. Landlords pay for utilities, repairs, and sometimes even furnishings.
On the other hand, when you’re renting, you surrender creative license to make the place your own at least to some extent. There are rules and regulations about what you can do in the place, since it’s technically not yours. You lose the benefit of increasing equity over time, and your landlord could actually increase rent in the future or even evict you.
There are many advantages to buying a home. Tax benefits come with being a homeowner, and your investment increases equity over time. More financial opportunities open up when you own your home, like turning your home into a rental property and collecting rent of your own. Living in a neighborhood gives unique community as you get to know neighbors and get a sense of belonging and stability over time. You also have the freedom to be creative and do what you want with the home without asking a landlord.
But on the downside, you’ll have to pay more up front when you purchase a house. Down payments, agents, and repairs and upgrades all cost money. Buying a house ties you down to a location and takes away the flexibility and freedom of renting. Moving takes a lot more planning and work when you own a home. As with any investment, there’s the potential for losing money instead of accruing it, depending on the housing market. Also, it’s your responsibility to maintain, clean, and fix the house, and you have no landlord to rely on. Besides the initial costs, you will have to furnish and landscape on your own.
Questions to Consider
Renting vs. buying is a key decision. Think through some questions that connect your personal situation with these pros and cons. First, how long do you plan to stay in the area? If you’re in a temporary job, renting is probably your best option. But if you’re settling down somewhere, why not invest in a house of your own? Next, how much down payment can you put down? How much rent or mortgage can you pay? These things are clearly significant factors. What are your future plans? Will they be better served by a more flexible or a more stable arrangement? Lastly, are you prepared to take on the responsibility of maintaining a house?
If you have come to the decision that buying is the right option for you, we hope you’ll get in touch with a real estate agent today to determine your next steps. And please contact us today if you need help selling your Harris County GA home.