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Is it More Beneficial to Rent or Buy a House in 2022?

October 27th, 2022 | 6 min. read

Is it More Beneficial to Rent or Buy a House in 2022?

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It's the age-old question: is it better to rent or buy a house? And with rising housing costs and interest rates, it's a question that more and more people are asking themselves, especially if you're ready to move out of your parent's home or just looking for a new location. So… what's the right answer?

There are pros and cons to both renting and buying- and the best decision for you will depend on your unique circumstances. 

  • Are you financially ready to buy a house?bubble---notepad-and-pen
  • Are you ok with renting a space where there are restrictions on what you can do in your place?
  • Are you prepared to maintain a property and keep up with repairs?
  • Is there a chance you might be ready to move in the next few years? 

As a homeowner who used to be a tenant Someone who occupies land or property rented from a landlord for more than 11 years, I can tell you what I've experienced on both sides of the spectrum. With these questions in mind, we'll explore some of the key factors to help you make an informed decision if renting or buying a house would be a better option for you!

 

here's a quick look at what we'll cover

 

 

Keys-Iconrenting 

Rental properties offer certain benefits over buying a house, such as cost-effectiveness and flexibility. While there are many advantages to renting versus owning property (like being able to move in or out on your timeline relatively easily), one major drawback is that you're at the landlord's mercy if the situation doesn't work out--you can't just go back home anytime!  Here's a closer look at the advantages and disadvantages.  

Advantages of renting

disadvantages to renting

QUICK TIP: Depending on your situation, renting can give you more flexibility than owning a house. If you suddenly need to move for work or because your family is expanding, it’s much easier to do when you’re renting rather than owning. Breaking a lease may be simpler than paying more money on a new house if you're currently a homeowner. 

 

Home-Loans-Icon-whitebuying bubble---couple-looking-at-a-house

When you become a homeowner, there are certain things that you immediately have to start thinking about. For one, home maintenance and repairs are now your responsibility, so you will need to build up a savings account for emergency home repairs and typical home maintenance tasks like HVAC filter changes and annual cleaning of the gutters.

QUICK TIP: Have an emergency savings fund? If not,  I have tips to help you build one. Here you go. 7 Steps to Building an Emergency Savings Fund

Here's a list of advantages and disadvantages when it comes to buying a home. 

Advantages of buying a house

disadvantages of buying a home

 

 

Keep in mind that when having a home, most home insurance policies require that homeowners take certain safety precautions in order to qualify for coverage - things like installing alarms, fire suppression systems, and lightning rods could all be expected of a homeowner.

Ultimately, when buying a home or an apartment, you need to carefully weigh all of your options and do your research before making any final decisions.

 

QUICK TIP: There is nothing wrong with not buying a house. Really! 

 

There's a societal pressure that you have to be a homeowner. Yes it may make sense to buy a house but you might have no interest or ability for maintenance or yard work or upkeep. Maybe paying a little more in rent isn’t a deal breaker. And that's okay! You know what's best for you and your family.

 

Stopwatch-Iconwhen does it make sense to rent or buy a house?

There is no easy answer to the question of rent vs buying a house, as it depends on several different factors. For some, buying a home may be financially viable and make sense in the long term. This can be especially true if you are able to secure a low-interest rate and take advantage of tax breaks. Additionally, owning your own home can give you greater stability and security and offer other intangible benefits like emotional satisfaction.

However, for others, renting may make more sense. Maybe you aren't ready to settle down and don't want the commitment of owning property right now. Or perhaps you are looking for maximum flexibility when it comes to where you live or which amenities your home has. Or, it could just be too expensive to pay the closing costs and down payment up front.

When considering your options, make sure to review these factors when making a decision: 

 

List-Iconfactors to consider when deciding to rent or buy

 

how are your finances?

how long do you plan on living in the home?

where will you be located?

why are you looking to rent?

why are you looking to buy?

 

what's next?skyla-article-conclusion2

Ultimately, when renting or buying a home you need to carefully weigh all of your options and do your research before making any final decisions. 

  • Do you know where you want to live? do you need a flexibility and desire to travel often? If so, renting might be a better option. Aside from flexibility, keep in mind that location is an extremely important factor to consider. Property taxes, the cost of homes may cost depending on the location you may be interested in.
  • Do you know what you can afford to buy? 
  • Can you afford home repairs and maintenance costs? To help you understand the costs that comes with buying a home - I have the perfect article for you.
What Are the Costs of Buying a Home?

 

Want to talk this through? 

Our Mortgage Loan Officers are here to help! You can send an email, give us a call at 704.375.0183 x 1525, or visit any of our branches.

Yanna

Yanna

As the Content Specialist and author of the Learning & Guidance Center, Yanna enjoys motivating others by uncovering all that's possible in the world of finance. From financial tips and tricks to ultimate guides and comparison charts, she is obsessed with finding ways to help readers excel in their journey towards financial freedom.

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