Renting vs. Owning

If you're like many people, you've probably spent a good chunk of your life renting an apartment or house. And with the current cost of real estate, you might be wondering if it's even worth it to buy a new home. You might be wondering if you should just keep renting and avoid the hassle of homeownership altogether.

Renting has its perks — but there are pros and cons to both, so it's important to weigh your options carefully before making a decision. Let's take a look at some of the key points of renting vs. owning a home.

There's no denying that renting has its own perks. For one, you don't have to worry about maintenance or repairs. If something breaks, it's up to your landlord to fix it. And if you want to move, there's no need to go through the hassle of selling your home — you can simply give notice and be on your way.

But there's a big financial downside to renting that you should be aware of. When you're renting, you're essentially paying someone else's mortgage…and you'll never see that money again.

When you own a home, your monthly mortgage payments represent an investment in your future. And once the house is paid off, you'll have a valuable asset that can be passed down to your children or used as collateral for another loan. 

The Risks of Renting vs. Owning 

Of course, there are risks associated with both renting and owning a home. For renters, the biggest risk is eviction. If your landlord decides they want to sell the property, they can give you notice and you'll be required to vacate. 

Owners also face the risk of losing their home, but it's important to remember that homeowners have more control than renters do. If you're facing financial hardship, you may be able to work with your lender to modify your loan terms or even go through a short sale process instead of foreclosure. 

Raising rent is another risk for renters. If your landlord decides to raise the rent, you'll be forced to either pay more or move out. 

Mortgage payments are generally fixed, so you won't have to worry about your payment going up (unless you have an adjustable-rate mortgage). And with interest rates climbing now may be the best time to buy a new home.

Other drawbacks for renting include:

In real estate, market conditions are constantly changing and hard to predict. If the value of your home decreases, you may end up owing more than the house is worth. If you decide to sell your home during an unfavorable market, you may not get back the full amount you paid for it or you may need to wait for market conditions to improve before putting your home up for sale.

As a homeowner, you're responsible for all maintenance and repairs, regardless of how expensive they may be. While all homes will require some maintenance, the advantage to buying a new home is the warranty coverage that comes with the new systems. In addition, new homes are more energy efficient, making your out-of-pocket costs to maintain the home lower.

As you can see, there are pros and cons to both renting and owning a home. It's important to weigh your options carefully and consider all of the risks before making a decision.

The best way to decide if buying or renting is right for your family is to sit down and calculate the costs. Consider the following:

Answering these questions can help you figure out if you're ready to buy a home or if renting is the better option. 

How to Get Started With Buying a Home 

If you're thinking about buying a home, the first step is to explore your financing options. There are many types of loans available, and working with a qualified lender will help you choose the best option for your unique situation. Once you've been pre-approved for a loan, it's time to start shopping for your new home!

Caruso Homes makes this entire process easy for homebuyers. We partner with top lenders to offer a variety of financing options, and we'll work with you to find the best fit for your needs. 

Plus, they know our construction process inside and out, so your new home purchase can be seamless from start to finish. 

Contact us today to learn more about our new construction homes in Maryland, Delaware, Pennsylvania, and North Carolina!