When deciding whether to buy or lease a home, the first thing you need to consider is your current lifestyle; this includes your financial situation, career, plans for the future, and the level of commitment you want to make. There are many pros and cons of buying vs. leasing a home, and it is important to consider your home ownership goals and what is best for you at the time. Take into the consideration the following when it comes to buying vs. leasing a home:
Leasing
There are many advantages to leasing a home. For starters, there is no down payment or mortgage. The most expensive aspect of leasing is paying for the application fee, security deposit and first month’s rent when you decide on a place. An additional advantage of leasing is that the landlord is usually responsible for maintenance, repairs and sometimes yard work. Leases are typically renewed on a year-to-year basis so if you need something short term or are not ready to be rooted in one location this is definitely the best and most-cost effective option for you. Although there are many advantages to leasing, it is important to remember that the landlord has complete control over the property and it is possible that rent can increase when looking to renew.
Owning
Purchasing a home can be one of the biggest financial decisions in a person’s lifetime. The major benefit of owning a home is the increase in the property’s value overtime. You have complete control over all aspects of the home and can renovate or enhance the property to your liking. If you are determined to settle in one location it may be more cost-effective to purchase a home if your mortgage payment is the same or less than the cost of renting in your ideal location. Although homeownership can be the best route investment-wise, it is important to take into consideration the cost of home repairs, taxes and insurance.