Buying or renting? 6 things to consider when it’s time to move
If the time has come to move out of your current dwelling, it can be a difficult choice as to whether you should rent or buy your next home. Whether you’re upgrading or downsizing, we’ll help you make your decision by comparing the pros and cons of renting vs buying.
1. What if I’m forced to move from my new home?
While this can be a legitimate concern when renting, it is more likely to occur when renting from a landlord who only owns one or two properties. Find out in advance whether they intend to move into their rental at any point and be sure to read your lease so you know your rights. This concern can also be lessened by renting through experienced, professional property managers.
2. What if the value of my property drops?
Buying a home is out-rightly far more expensive than renting, and so it has a higher financial risk. If the real-estate market drops, you could be left with a property worth far less than it was valued upon purchase. On the upside, your home can also increase in value.
3. What if my rent price changes?
When renting, you lack some of the security found in home-ownership. Your landlord has the right to increase your weekly rent. If you buy and have a fixed-rate mortgage, this uncertainty is avoided. In addition, monthly fees as an owner are often less than that of a renter.
4. What if I need to sell down the road?
Buying a house can be a life-time commitment. If you suddenly need to sell as a result of, for example, degenerative health reasons, your house could take months to sell. Not to mention the additional fees you’ll need to pay an agent to sell your home, a fee you would avoid if renting.
5. What if something breaks?
Up-keeping a home can be both costly in both time and money. As a renter, repairs and renovations are generally the landlord’s responsibility. If you choose to buy, maintenance costs are up to you. On the other hand, you would have the freedom to renovate that you would not have as a renter.
6. What if I hate my new location?
If you’re moving to a new city it might make more sense to rent. This way there is less risk should you discover the new area is not what you initially expected.