Renting vs. Buying a Home

Shopping for your first humble abode is one of life’s biggest milestones. It’s also one for your savings account! You’re finally on your own, with no parents, no dorm advisors—maybe just one or two roommates to split the cost and binge watch Westworld with. But with great power comes great responsibility—at least according to Spider-Man’s uncle. The big question: rent vs. buy? The matter of buying versus renting crosses every shopper’s mind. Renting an apartment is usually the next step after leaving the dorms because certain things are still taken care of by the complex. Broken water pipe? The building will fix it. Fridge making weird noises? Maintenance will be in to take a look at it.

At a glance, renting may be cheaper because you don’t have to pay for new light bulbs or rusted pipes. In some cases, you’ll even have a convenient gym or community room built in. How nice would it be to just walk downstairs and run on the treadmill for 30 minutes? But consider this: your rent amount will rise with the neighborhood’s market value. It’s super hard to find a rent-controlled apartment or home these days. Another thought to consider is that renters cannot customize their places. No painting the walls or cabinets unless you get the manager’s permission first.

As for the payment process itself, some renters may feel like they’re throwing money away because the house or apartment belongs to someone else. There’s no ownership in renting. Homeowners, on the other hand, are not only paying for the house, but are also paying the bank interest on the mortgage. You can learn how to save money efficiently, but what it comes down to is this: Would you rather pay the bank or a landlord?

If you’re a renter, ask yourself why you want to buy. Is a baby on the way, and you need the extra room? Do you have a dog who’s tired of being indoors all the time?

If you’re a homeowner looking to rent, ask yourself why. Is home maintenance too much of a downside? Are you the type of person who moves around a lot?

No matter how you look at it, buying and renting both have their pros and cons, and most of the time, your savings account will decide for you. For future homebuyers, consider the area, house price growth, and the duration of your stay—and don’t forget to check out our Mortgage Paperwork Checklist to speed up the process! For future renters, consider any pets or children that may enter your life, as well as noisy neighbors in apartment buildings.