Are you at that point where you’re ‘ready’ to take the monumental step of purchasing your own home?  

Of breaking free from the landlord-controlled life of renting and into being the king or queen of your own castle?

Or is it more like almost ready?  Not quite there yet.  

• Maybe your finances and your credit score aren’t where they need to be.  

• Maybe you haven’t been in your current job long enough. 
   
• Maybe you’re not even sure if you have the guts to take on all the responsibilities that go along with the glory of owning your own home.

There’s definitely plenty of pros and plenty of cons on each side of the fence:  renting vs. owning.  

And in this blog post, we’ll explore them all.  Some, we’re pretty sure you might not have thought of up until now.  But, they’ll be relevant and helpful to your current renting vs. owning conundrum.

We’re sure that by the end of this article, you’ll have gained some insight that will help you come to a decision that might look something like:

‘I’m definitely going to stay put where I am and keep renting.’

‘I’ll keep renting for a while – with a new game plan and timeline for buying.’

‘Heck yea, I’m ready!’

Opinions are like farts: Everyone loves the smell of their own.  And we all should keep them to ourselves.

One note:  Like anything in life, everyone’s got an opinion on it.   And that surely goes for whether or not you should keep renting or buy your own home.

• Your parents are telling you to wait until you have a better job.
• Your roommate is telling you to stay. 
• Your friend, who’s a real estate agent, is telling you to buy.
• Etc. etc. etc.

They all have their reasons for why you should or shouldn’t take the plunge. 

Some of the advice is based on wisdom, experience and having your best interest in mind – like your parents.

Other advice might be based on a person’s own convenience – like your roommate’s.  

Ultimately, though, the decision is solely yours (whether you are a single person or a couple).

But, since buying a home is often the biggest purchase a person will ever make in their lifetime, it’s definitely not an easy one for most people.

One of the best things you can do is to start educating yourself on all aspects of homebuying.  

That’s where the New Homebuyer Academy.com comes in as one of the resources for helping you learn all you can.

Keep visiting this website often for more articles all about home buying.

And aside from that – as they say, take everyone’s opinion with a grain of salt.  

10 Pros of Renting

1. Rent is Usually Cheaper than Mortgage Payments

As we know, this isn’t always the case.  Especially in some areas where rent prices are extremely high.

But overall, paying rent is less expensive than paying a mortgage.  

Because along with paying the principal and interest on the mortgage every month, the amount also includes home insurance and taxes.

Banks hold this insurance and tax money in an escrow account until they are due.  That way, the banks can guarantee that these bills will get paid.  This makes mortgages way less risky for  banks.  

2. Renting Keeps You Out of the Fluctuating Housing Market

We all know from this year – 2022 – that the housing market can be pretty scary at times.

Rising mortgage interest rates, high home prices, housing shortages, and tough competition are all issues a renter doesn’t have to deal with.

It’s nice when the economy is trending upwards and things are looking optimistic.  Like when mortgage interest rates are going down and home prices are leveling off.

But not so fun when the opposite is true, like we’ve been experiencing this year.

3. The Longer You Rent, the Longer You Can Save for a House

This could mean having a much bigger down payment on a house.  Which can lower your monthly mortgage payments.

You’re also able to save longer for all of the closing costs, moving costs, and the furnishings you’ll need once you move in.

4. You Can Work on Improving Your Credit Score

Renting longer also means you can keep working on getting our credit score higher.  And fixing any credit issues that are lingering on your credit report.

You can take advantage of this time to get other parts of your financial ‘house’ in order as well. 

Like learning to budget, learning about investing, increasing your income, and automating saving and investing.

All of this could mean the difference between purchasing a fixer upper right away that you have to keep throwing time and money into – and being able to buy your dream home in a few more years.

5. You Have More Flexibility When Renting

When you’re renting, you have the freedom to pack up and move when you want. 

You might have to wait until your lease is up or lose your security deposit and even pay fines for breaking your lease.  

But, it’s still a lot easier to leave an apartment than to sell a house. 

Especially if an exciting opportunity across the state or across the country presents itself, for instance.

Renting also makes sense if you’re not sure where you want to settle down.

There’s plenty of scenarios that fall under this. Here are just two: 

• You might be a single person in your twenties who wants to be near other singles right now.

• Maybe you’re a married couple who moved away to pursue career opportunities after college. When you’re ready to start a family, however, you might want to come back home, so family can help out with the kids.

Even just being able to try out different towns or neighborhoods in your city.  It’s much easier to switch apartments compared to houses.

6. Renting Allows You to Invest Your Money in Other Ways

If you choose to keep renting and not purchase a house in the future, all that money you would have used for a down payment and other homeowner expenses could be put into investments, such as the stock market.

Renting is a smart financial choice for many people.

7. You Can Enjoy Amenities Without Having to Maintain Them 

If your apartment complex has a pool, for instance, you can just jump in when you’re hot.  No need to worry about the filter breaking down, replacing the liner, and yearly upkeep.

Besides not having to take care of it, just think of how much a pool costs – to buy and maintain every year.

Nothing you have to think about in an apartment.

8. Renting Means Less Financial Burden

When you’re renting, you don’t have the stress that goes along with homeownership.

Like making sure you always have the money to pay the mortgage every month.  

Or the quarterly water and sewer bills.  Or having the septic system pumped out every year; broken pipes replaced; gutters cleaned; new windows installed; and on and on.

9. Renting Can Mean More Time on Your Hands 

We have friends nearby that live on four acres of beautiful green grass and landscaping.  

What do you think they spend at least six hours doing every single week in the Spring and Summer?   Mowing the lawn.  For hours every week.  Riding up and down, up and down, up and down.

Maybe they love it.  And you might too someday.

You might also be happy with a much smaller yard to take care of.

Renting definitely allows someone more ‘maintenance free’ time.

10. Renting Means Less Risk

Is there a huge storm coming?  

When you’re renting, you need to worry about keeping you and your family safe.  (We’re simplifying this.)

When you’re a homeowner, you not only need to worry about keeping everyone safe – but protecting your house, as well. 

A tree could fall on it, for instance.  The basement might flood, etc. etc.

Besides these kinds of scenarios, there’s also the risk of defaulting on your mortgage.  A whole other ball of wax.

10 Pros of Owning Your Own Home

1. No Landlord to Deal With

Many of us have either experienced first-hand or have heard a few good ‘obnoxious landlord’ stories.  

That’s because landlords have always had a reputation for being slow to fix problems and make improvements.  Yet, quick to raise the rent.

The truth is there’s plenty of great ones out there too.  We can say wholeheartedly that we’ve had some wonderful landlords in the past.

But wonderful or not, renting still means you don’t have full control over your living arrangements.

Renting also comes with the risk that the landlord will sell the house, leaving you to have to move out.  

2. Feeling of Accomplishment  

You’ll be a homeowner!  The American dream.  

3. Privacy  

Do you want to blast Pitbull every morning to get yourself pumped for the day?  You can’t do that so much in an apartment house with paper thin walls.

How about having a private cookout with friends in the shared backyard?

Skinny dipping in the pool?

All things you can (most likely do) when you own your own home.  Within limits – but you get the point.

In general, you have more privacy as a homeowner than a renter.  

4. Appreciation

Sure, we’re talking about appreciating and being grateful for your house.

But, we’re really talking about the green stuff – money, mula!

Like the financial experts have always said – with plenty of figures to prove it – real estate is an excellent investment.

Like taxes and inflation:  over time, home values always go up.  

This means staying in a house for at least several years can guarantee that your house will be worth more than you paid for it.

5. You Get Out of Skyrocketing Rents  

In our opinion, rents have gotten out of control.  Astronomical in some areas. 

Once you become a homeowner, you’re officially out of that rental rat race.

6. Mortgage Payments are Like Forced Savings

As the saying goes – paying rent is like throwing money out the window every month.  

And on the opposite end – paying a mortgage is like putting money into your own bank account every month.

Basically, the mortgage principal that you pay every month goes straight into the equity of the home.  Helping you build wealth – little by little.

7. You Can Build Wealth in Several Ways

Besides building equity by paying your mortgage principal every month, you can build wealth through your home in other ways:

• You can use the equity to put a down payment on a house you use as an investment property.  To either flip or rent out.

• You can start a business with it.

• You can increase your home’s value by renovating and making improvements to it.

8. You Can Get as Creative as You Want

Do you love the new modern farmhouse style? Or maybe mid-century modern is more your taste.

Whatever your style and fancy is, you can indulge it thoroughly in your own home.

There’s just so much you can do in a house that you’re only renting.  

Even if a landlord does allow you to paint walls, for instance – is it worth it if you’re planning on moving in a year?

In your own home, though, the creativity you get to express – inside and out – is almost endless. 

And besides this, any work you do almost always increases the house’s value.

9. DIY Projects are Fun and Rewarding

Just think what it will be like to watch your favorite shows on HGTV and say, “I can do that!” now that you own your own home.

From planning a project. . .

. . . to going out and shopping for all the materials and supplies,

. . . to being up to your elbows in sawdust, spackle, paint and a huge mess,

. . . then to the pride and satisfaction of sitting back and looking at it all finished.

These are what beautiful memories – and homes – are made of!

10. Homeowners Get Tax Breaks

The IRS has a handful of deductions homeowners can take advantage of every year on their taxes.

You’ll want to consult a tax expert to see which ones will apply, especially since the tax regulations book is as thick as the Bible.  

Five of them are:

• Mortgage Interest  
• Property Taxes
• Mortgage Insurance 
• Necessary Home Improvements
• Home Office Expenses

There’s usually caps on the total amount you can deduct for each category.  And many of them are a percentage of the total you spent that year.  

But, they are all worth looking into.

In fact, make sure to research any and all tax benefits and other types of benefits that are out there for homeowners.

11. Bonus: You Can Have All the Pets You Want!

We couldn’t help but add this one.

One of the beautiful benefits of owning your own home.

Enjoy!

We hope this article helped!

Stay tuned for more like it on all the ins and outs of homebuying for first-time homebuyers.

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If you’d like to ask us any questions, email us anytime at:  paula@michaelandsullivan.com.