If you’re a first-time home buyer, you’re probably struggling with choosing between renting or buying your new home. Consider your lifestyle and your future goals. If you have a family and want to settle down, buying could be the better option. On the
other hand, if you’re still uncertain about your career path and don’t want to lock yourself into a long-term commitment, renting seems like a more attractive choice.
If you fall somewhere in the middle, try considering the benefits and disadvantages of renting vs. buying.
Pros and Cons of Renting
- Less responsibility. If something goes wrong with the plumbing or your heater needs repaired, it falls on the landlord to fix these issues.
- No property tax bills. Since you don’t own your residence, you won’t need to worry about high property tax bills. However, this means you won’t receive tax benefits
for the property.
- More freedom. You have the option of finding a new place to live when your lease ends if you’re unsatisfied with your home. The drawback to this is that you may
have to deal with the hassle (and expense!) of moving multiple times.
- Lower upfront payments: Small rent payments are far more manageable than a sizeable mortgage. Keep in mind that the landlord may decide to raise your monthly rent
whenever they choose.
Pros and Cons of Buying
- Complete ownership. You’re free to make renovations whenever you wish, but you’re also responsible for any problems when they arise.
- Mortgages. You need a lot of money on hand to buy your home, and mortgage payments and interest can be very overwhelming.
- Home equity. The value of your home can increase over time, meaning a bigger payoff if you decide to sell it. Your home needs to be kept in good condition to ensure
that you don’t lose money.
- Tax benefits. If you own your home, tax laws allow you to write off mortgage interest payments.
If you’re still not sure whether renting or buying is right for you, the Rafeh Group
can help. Our knowledgeable staff helps homeowners in Los Angeles County, Santa Clarita Valley, and Antelope Valley make the best decisions when choosing their dream home.