Is it More Beneficial to Rent or Buy a House in 2024?

• You're not responsible for repairs or maintenance. The landlord takes responsibility for handling this. If you're in a rental now and if an appliance is not operating properly, notice leakage in your ceiling - contact your landlord.
• Rent is often cheaper than a mortgage payment.
• More location options available. Renting gives you more options in location (like an apartment building in the coolest part of town or closer to your work) opposed to homeowners who are restricted to locations they can afford to buy. 
• More flexibility to move in or out. Unlike houses, you can easily move in or out much more quickly.
• No need to pay a large sum of money up front: When buying a house, you'll need a large sum of money for down payments, inspections, closing costs, etc.  
• No real estate or property taxes. This cost could come out to thousands of dollars per year when buying a house. luckily this is not expected when renting. 
• Typically lower utility costs. This of course is based on the size of your home, but utilities cost less for a smaller apartment rental than it is for a house.  Psst... my utility bill now as a homeowner is a couple hundred dollars more than when I rented my townhouse in Greensboro, NC. 
  
  

• Not building equity. Renting can feel like you’re just throwing your money down the drain every month since you’re not building an equity like you would with owning.
• You could be trapped in an apartment with rude neighbors
• Pay extra for pets: Not a lot of landlords offer a pet-friendly home for tenants. This could be due to the extra work like clean up that may be involved but it's possible if there are pet-friendly places for rent, the landlord may charge you more for rent. 
• Rent can increase each year. Since the landlord owns the land, they can raise rent anytime. For me, my rent would increase at the beginning of each lease renewal. I hated it 
• You may have to move if the landlord decides to sell the property. 

• Less likely to have noisy neighbors. You may not have to worry about noisy neighbors or landlords breathing down your neck over petty issues.  
• You can personalize the property however you see fit. When you're a homeowner, there's no need to get permission from anyone on what to do with your property. Psst... unless you live in a community with a Homeowners Association. Then there may be a little restriction depending on the organization
  

  Psst Some residential communities come with HOA organizations- Homeowners Association is an organization that enforces rules for properties and residents. But can help maintain the property's value and be an added layer of support if you need it. When finding a home, look out for HOAs and their fees. Some HOA fees cost more than others.

• House will benefit you. If you make mortgage payments, each payment will go towards you owning the home and not the landlord's pockets.
• It may make sense to buy soon. 
  Since interest rates are increasing, buying a house soon could mean you can get a better interest rate now rather than waiting and having rates rise again.
• Buying a home can mean stability for you and your family. 
  
  

• The monthly mortgage could cost more than a rental.
• Costly general repairs and maintenance. Be ready to tackle maintenance and repairs like mowing the lawn, repairing the roof if its damaged, repairing or replacing HVAC units if needed, and the list of home repairs can go on and on. Repairs can be very costly. 
• No landlord to fix the problem for you. being a homeowner is your responsibility. 
• Buying a house can take a huge chunk of money upfront. It may be harder to afford if you're not financially ready for a house.
• More miscellaneous costs and payments. When getting a house with a mortgage you have other costs on top of a monthly mortgage, you have closing costs, inspections, moving costs, and more that are immediately due when getting a house. Here's a list of costs that comes with buying a home so you're better prepared. 
  
  

Are you financially ready? Buying a house typically costs between 15-30% of your annual income, depending on where you live. If you don’t have that much saved up, you may need to take out a bigger mortgage amount (especially if you’re not able to make a down payment.) Doing this can add years to the amount of time it will take you to pay off your home.

Want to know more about the costs of buying a home? I have just the article for you!  

 

When you buy a house, are you committing to staying in that place for a minimum of 3-5 years? If you think you might move within that time frame, it may not be worth it to buy a house since the costs you'll have to put out on the house upkeep in a short time frame may not be worth buying. 

If you're renting, are you looking to rent long-term or short-term? The standard lease agreement is usually for one year but can typically be renewed. If you're looking to rent long-term, then it might make more sense to buy a property. I'm sure you don't want to feel like you're throwing your money away every month. 

Renting an apartment is typically much less expensive than buying a house. You can usually find apartments for rent for around $2,000  per month. Of course, this depends on where you are. For example, rent in New York is $2,268 according to Apartment lists April 2024 New York City Rent Report. 

Via Giphy

 

If you're questioning if location plays a role in whether to rent or buy? Peep the Apartment List Cost of Living in North Carolina 2023. You'll see a difference.

When it comes to renting or buying a home, location is an extremely important factor to consider. For example, if you are looking to rent, you will want to focus on neighborhoods that offer good access to public transit, amenities like shops and restaurants, and other key services like schools and healthcare facilities. This will help ensure that you have easy and reliable access to the things you need daily.

On the other hand, if you are thinking about buying a home, it is important to take into account factors like commute times, property values in the area, and any existing development plans for the local area. These considerations will help you determine whether or not the potential investment is worth it based on where it is located.

Renting requires much less maintenance than buying a home. With a rental home, you don't have to worry about routine repairs, property upkeep, or unexpected disturbances like leaks or flooding. Additionally, rent gives you more flexibility when it comes to your living situation; you can move whenever you want, and you don't have to worry about selling your home if you decide to relocate for work or family reasons.

Some people enjoy the easy lifestyle and low maintenance of renting, while others prefer the sense of stability and control that comes with owning their own home.

For many people, the answer is simple: they want a place to call their own. They want to be able to and put down roots and have a space that is entirely their own

Others may be motivated by the potential for financial gain. Investing in property can be a great way to build long-term wealth, but if you don't have a plan in place to cover high fixed costs, buying may not be a good investment.

Make sure you're ready to pay for unexpected costs