Is It Time To Start Owning Vs. Renting?

Owning a home is a tremendous achievement for many. It is a sense of pride and success for which I would hope we all have an opportunity to experience. However, it is important to understand why some choose to rent and some choose to buy

1) Maintenance

Yes, owning a home is great, but it is a ton of work. When you own a home, you are stuck dealing with the inevitable item in your home breaking, bursting, leaking, or dying. For some of us, we are able to take care of the more simpler items around the house (a handyman). There are many others who barely know how to swing a hammer. In these cases, they are forced to hire a professional or at least someone more capable than themselves. It is in these circumstances as well that it would be best that you are a renter and not a homeowner. When you are renting, the landlord is typically going to be the one who is footing the bill to have someone come out and fix the items or they themselves are going to come over and fix any issues.

2) Knowing The Market

One of the biggest key drivers for many renters is the fact that the home prices and values are just too high. For example, if you were to look in the current market for an affordable home, you would likely being paying a significant markup due to the current housing market. Thus, if you are able to wait it out and rent, you can wait for the markets to settle again before looking to buy. Jordan and I were fortunate to get into our houses during two different drops in the market. Thus, we have grown significant equity in the houses we have owned. It is definitely a waiting game.

3) The Cost of Owning/Renting

One of the big key items I always like to discuss is the fact that owning a home allows you to have an investment. You can have a mortgage of $1500/month or a rent of $1500/month. Both of these provide payment for some form of housing. However, one is going back into an investment whereas the other is simply going to a company’s pocket. I have never be a believer in renting personally. I was about to sign a lease one time when I was getting ready to move out for the first time. Instead I managed to buy my first house instead. Had I not been blessed with that opportunity, I too would have been a renter. This again ties to owning versus renting and the true cost. Owning a home is great, but it roots you down, goes on your credit, you have taxes to pay, and you often have dumb HOA’s to deal with. Renting allows for more freedom, less stress on taxes, and lesser rules.

Ultimately, it comes down to you and your situation. You will know better than anyone else what you want to do and can do.