Should you buy a home or rent one? It is one of the biggest questions anyone living independently has to face. Some people will tell you that the decision depends primarily on resources, but there is more to it. Even if you have enough money for a sizable down payment, there may be some elements of home ownership that don’t fit into your plans.
On the other hand, renting may seem like a worry-free alternative at first glance, but it also comes with limitations. The following article is a breakdown of some of the most important factors involved in renting or buying a home.
The Cost
Cost is perhaps the most crucial aspect to consider when deciding to buy or rent. If you don’t have the savings necessary to pay a decent percentage upfront, you may not be able to purchase a house. As a property owner, you would also be on the hook for any repairs or renovations that may need to be done over time. The cost of owning a home vs. renting may discourage some people but bear in mind that this can be offset by any equity you build.
Flexibility
One of the key advantages of renting is flexibility. With a rented house or apartment, you won’t need to make arrangements to sell, so it is much easier to relocate if your circumstances change. On the other hand, you won’t have as much freedom to personalize or upgrade the living space. Your landlord likely will not allow you to make renovations to the property, such as installing new carpeting or painting the walls. That is why one of the main benefits of home ownership vs. renting is the option to do as you please.
Making Repairs
Dealing with the occasional breakdown of a home's systems and appliances is an unavoidable fact of life, no matter where you live. However, how you handle these predicaments can change dramatically based on your situation. If you rent, the landlord is likely responsible for any repairs to leaky pipes or faulty systems. If they go ahead and take care of the repairs, that’s great. If he or she procrastinates or ignores a problem, you could be in for a rough time.
If you own a house, however, there are more possibilities. One option is to protect yourself with a home warranty plan. These plans provide coverage in the event a major device or system breaks down due to regular wear and tear, and they can cover problems that standard homeowners insurance policies typically do not cover. This means you may not need to pay out of pocket to repair or replace an important appliance.
Pivotal Home Solutions is a recognized leader in home warranties and appliance repair plans for homeowners. To learn about the coverage options available in your area, enter your ZIP code above and find the right plans for you. When you are ready to enroll or if you have questions, contact us and learn more from one of our friendly, knowledgeable team members.