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Pros & Cons to Buying a Home vs Renting

Buying a home or renting is a decision each of us has to make at some point in our lives. In your 20s, renting can be the obvious option. This is a time when you are probably still weighing options on where to stay or have not yet settled into your career. Your lifestyle is best suited to renting an apartment or having a roommate to split the cost with.

Once you clock 30, your priorities change. Your career is probably on course. This is when housing needs become more important. You might even be building a family or are considering starting one. You have to make a decision on whether to continue renting or decide to buy a home. To aid you in this, let’s look at the pros & cons to buying a home vs renting.

Pros of Buying a Home

Security and freedom

Unlike a rental property, owning a home eliminates the threat of being evicted by a landlord. You get the freedom to renovate, decorate or change any aspect of your home whenever you like.

Building equity

Your home equity increases with every mortgage payment. Couple this with property appreciation and buying a home becomes a worthy investment. You can earn a profit upon selling your house. Mortgage refinancing can be of great help when making major purchases.

Income generation

As a homeowner, you can rent part of your property for some much-needed income boost. Running a home-based business is also easier when you own a house.

Improving your Credit Score

Timely mortgage payments factor positively on your credit reports. This sets you up for better rates on other lines of credit that you may require in the future.

Cost Effective

Tax deductions on mortgage interests will save you money. Same goes for tax deductions on income generated within your property.

Cons of Buying a Home

Ownership Costs

Owning a home comes with added costs. These include homeowner’s association payments, property taxes and rates, and maintenance costs.

Less Mobility

Moving from one state or location to another becomes difficult when you are a homeowner; especially if the move is dependent on selling your property. Selling can also be time-consuming.

High Interest

Factors such as location and the state of the economy can drive up interest rates on mortgages. This will increase the overall cost of ownership. At the same time, if yours is an adjustable rate mortgage (ARM), expect upward fluctuations on the monthly payments.

Possible Loss on Resale

One of the driving ideas for buying a home is that it’s an investment. However, making a profit upon selling is not a guarantee. Property value can drop drastically due to factors like recession that are beyond your control. Resale also comes with additional costs such as government and agent fees that will cut down on expected profits.

Pros of Renting

Flexibility

Staying in one place can be restrictive. This may be due to frequent job relocations. As a tenant, all you need to vacate is mostly a month notice to the landlord or lease expiry. This makes renting more flexible compared to owning a home which may require a lengthy process to offload the property.

Low Housing Costs

Apart from rent, a tenant bears no other financial obligation to the property. Utility bills are usually covered by the rent as well as maintenance costs. While one may have to insure their belongings, the cost pales in comparison to a homeowner’s insurance.

Investment Diversity

Renting leaves most of your current earnings available for investments. This is in contrast to buying a home which means most of your income goes towards one investment.

Cons of Renting

Less Freedom

The tenancy comes with rules that can be restrictive. Your ability to renovate or even decorate can be subject to disapproval by the building management. Some landlords may not even allow pets in their property.

Slow Maintenance

Not having to carry out maintenance is a plus on renting but it comes with its challenges. Issues to do with your ‘house’ have to go through building managers or rental agents who are never in a hurry to solve them.  In some cases, a leaking faucet can take months to be fixed.

Lease Limitations     

Most lease agreements have an annual increase clause of 5-10% on monthly payments. You also have little or no say when it comes to lease renewal. These can leave you looking for an apartment at the end of every lease term or year.

Not Owning

There is prestige that comes with owning anything of value; renting denies you this. Your monthly payments go towards the landlord’s loans and savings as opposed to paying for your own home with a mortgage.

Conclusion

In the long run, buying a home is the cheaper option. It’s also a plus on your long-term investments. However, it comes with more obligations. On the other hand, renting is more flexible. It also frees up more of your income which can go to savings. With this info at your fingertips, you are bound to make the choice that best suits you.

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Ulysses Martinez
Ulysses Martinez
21:06 05 Jun 20
Credit Absolate is helping me get my credit score up. They have done by far a fantastic job. I couldn't be more happy with the experience and the customer experience is phenomenal as if your part of the family. They make sure you understand your credit usage and the educational videos are very clear. They are changing my life around. Just being with them for 2 months I got my score from poor to fair and dropped of some accounts from my cresit report. I cant thank them enough. Truly a success story
Angel  Maldonado
Angel Maldonado
14:27 30 May 20
They are amazing! Not just Derk but the whole team is great. The videos they provide are so helpful. They just don't help you improve your credit score, they also teach you how to manage your credit score. If you have bad credit contact them 1st before you even start trying to fix your credit on your own!!!
Keith Russell
Keith Russell
23:40 29 May 20
Easy to work with. Very fact based and focus on teaching me how the credit scoring system really works. My credit score increased by 100 points. Best investment in my credit worthiness. Great customer service, this is the real deal.
Fanisha Vela
Fanisha Vela
16:05 05 May 20
This is a wonderful team to work with. They have made the process so easy and efficient. Results seen within the first round of action!
Brandon Dickinson
Brandon Dickinson
01:04 26 Mar 20
What an awesome team. They work hard and get things done. My credit has jumped amazingly and the coaching videos are very informative to every detail. Would recommend this company to anyone looking to better their credit.
Bre Udave
Bre Udave
22:59 04 Mar 20
this has been one of the best experiences i've had working with a company! i am very happy with my success thus far and everyone (especially Leslie) has been so helpful with everything! If you're looking to fix your credit, stop searching and use this company!!
Steven Lasseson
Steven Lasseson
14:51 28 Feb 20
I've tried a few other credit repair companies and Credit Absolute has provided the best service I've come across. In just over a year, they were able to get numerous items removed from my credit report. The process is simple, the staff is easy to work with, and the results are everything you'd hope for. If you are looking for help in your journey to financial freedom, do yourself a favor and give Credit Absolute a call.
Kade Deeyor
Kade Deeyor
21:51 19 Feb 20
Credit Absolute has been a huge help for me. Since the beginning I’ve seen an enormous increase in my credit score. Felicia and Leslie are especially helpful, concise, and very informative. They both always get back to me within minutes if I have any questions or concerns. I would highly recommend Credit Absolute to anyone seeking a better understanding of how Credit Scores actually work or if you’re looking to increase your scores.
Phuong Mai Pham
Phuong Mai Pham
17:56 13 Feb 20
Credit absolute has helped me tremendously over the past few months. My scores for all 3 credit bureaus have increased by 50+ points. I appreciate the education on credit. I am now much more knowledgeable and strategic about when I should and should not use my credit cards. I look forward to my progress as my goal is to purchase a home by the end of the year!
Doug Donaldson
Doug Donaldson
06:13 21 Dec 19
I noticed a few changes on my credit report that had lowered my score which concerned me and after looking at reviews online I decided to set an appointment with Derek at Credit Absolute. I was fully expecting to spend hundreds of dollars for his advice on what I should do to get it back up to where I had it. After consulting with him and looking in depth at my report, he gave me some tips and helped me understand how the 3 bureaus work and what I could do to increase my score. Best of all..... he didn't charge me a penny. Derek is an honest guy, running an honest business, and if you are looking to build your credit score then he is the guy to turn to. It was about a year ago that I met with him and my score is up over 90 points. 10/10 would recommend Derek at Credit Absolute!
Ashley Krolak
Ashley Krolak
21:58 25 Nov 19
Thank you to entire team at Credit Absolute! We have accomplished so much in a short amount of time. They have helped my whole family increase our scores. They are organized, helpful and get the job done all while teaching you helpful hints along the way. I highly recommend this company for any credit needs.
dan uyematsud
dan uyematsud
21:29 13 Nov 19
Simply the BEST!!!!!!! Derick, Felicia and Becky are extremely good at their job. They work very hard to teach one how to improve their credit as they work very hard on their end to build your credit. I am very pleased as I see my credit score increasing in a short period of time. Thank you again, Dan U
nestor victore
nestor victore
22:14 04 Nov 19
You guys have done an amazing job, I'm very happy with my score has improved over 100 points. I'm happy with you guys services and help, thanks.
Tina Abbott
Tina Abbott
02:07 01 Nov 19
My experience with Credit Absolute has been nothing but wonderful! The entire staff are very knowledgeable and understanding. Felica is the one of the nicest people.
Christopher Moore
Christopher Moore
15:10 03 Oct 19
Communication with Derick and the team couldn't be better. I spoke directly to Derick and he was upfront, honest and didn't waste time. I would certainly recommend Credit Absolute to anyone who is looking into credit repair. They'll give you an honest overview of where you are and what they can do to help you reach your goals!
David Burgess
David Burgess
19:02 20 Aug 19
Derick and his team have been extremely helpful and informative throughout this entire process. I would recommend to anyone who wants/needs to repair credit quickly! Worth more than the money without question!
steve moore
steve moore
23:32 16 Aug 19
Derick and his team were awesome! I would highly recommend their services if you are looking to refurbish your credit score!!! +A all around for his team and the willingness to help me out !
Zacary Roberts
Zacary Roberts
03:00 26 Jul 19
Felicia helped me out so much, the company is professional l, but they treat you like your their only client. They are thorough and honest and my credit score has gone up remarkably ever since I started working with them. Thank you so much!
Chris Gunn
Chris Gunn
18:50 25 Jul 19
Good folks. Money well spent. Their service works! I finally got my credit straightened out to where I could buy a home because of them.
Christy Russell
Christy Russell
15:37 25 Jul 19
This company provides a great service! Friendly staff, plain-spoken, direct, no nonsense. They really make you feel like they care. Simple and straight-forward approach. They analyze your credit report and quickly make a plan to step-by-step repair any flags. I highly recommend their program.
Christian Wunder
Christian Wunder
19:35 18 Jul 19
They have been great to work with. Going on 3 months now and my score has taken a huge jump. I've had items removed from my credit and every month we go over our strategy to maximize the improvements. Highly recommend :)
Baron Adelmann
Baron Adelmann
21:59 26 Oct 17
Derick and his team have helped me tremendously! He explains the process of improving your credit and does all of the work for you! My credit score has improved drastically and I know that I couldn't have done it without the help of Credit Absolute. Because of them, my business has continued to thrive in a way I never thought possible. Thank you Derick and the Credit Absolute Team!
Gabriela Lovelace
Gabriela Lovelace
23:17 30 Jun 17
I want to thank the wonderful team of Credit Absolute for all the work they did in help me clean my credit! They have teach me how to keep my credit clean and how to make it grow! I will be their customer for life and I recommend to anyone who needs help with their credit! Credit Absolute you are awesome!!!!
Sho Sho Smith
Sho Sho Smith
22:31 16 Feb 17
Derek just made my day when I thought my credit was being compromised due to a balance on my late husband's credit card. He checked it out my credit health and assured me that I lost no points and the balance was forgiven. Great news! He gave me pointers on how to get my credit score even higher to put me into the premium level and coached me on getting back on my feet, credit-wise, after my husband's death. A great experience!
Vanity Hernandez
Vanity Hernandez
20:15 19 Jul 16
I was referred to Derick when my credit score dropped 3 points as I was in the process of trying to get a mortgage loan. Derick gave me GREAT advise and also helped confirm all the credit myths I have overheard on how to improve your credit score. Not only did he give me advise, he not once tried to have me hire him like others usually do. Derick was genuine and that's hard to come across with business. :)
Ian Farruggio
Ian Farruggio
19:29 05 Jul 16
Derek was completely professional and offered helpful suggestions to help me improve my credit. He was honest, in that his services were really not needed and helped to point me in the right direction free of charge. If you have any questions regarding your credit, this is the only place to go!!!
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