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Insider Perspective
21 March 2023
5 min read

Which is better renting or buying?  

This not a one size fits all type of answer and there are many factors that should be taken into consideration.
Kimberly Bartlett Headshot
Kimberly Bartlett
Crown Home Mortgage
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This not a one size fits all type of answer and there are many factors that should be taken into consideration. Every household has their own separate needs, goals and desires. 

Renting has its Advantages

Especially when it comes to not having the responsibility to make repairs or the convenience of not having the responsibility to shovel snow or maintain any other exterior maintenance like the landscaping. There is also the flexibility of being able to move after lease is up if you’re not happy with the rental or just want something better.  

The downside of renting is you are limited to making interior changes and may need approval of the land lord if you want to make changes. There is also no return on investment for renters. Rent payments go toward landlord’s asset and not the renter. Renters may also find that there are sometimes challenges with noise and odor control (like a neighbor’s cooking) when renting and depending on the location, some rentals today are double the price of a mortgage. 

The Great Thing about Homeownership

There is a return on your investment. Mortgage payments go towards a homeowner’s own asset, which they can draw from when there is equity in the home over time. Other perks are being able to design the interior and exterior to your liking, having more privacy and having the freedom of having a pet if you choose to do so. 

Home ownership has its downsides as well. It is a bigger investment that can be lost if not managed properly. Loss of a home is an expensive debt to recover from. The homeowner is responsible for the upkeep of the interior and exterior of the home. There is a bigger expense for repairs and it’s not always convenient to just up and leave if you are not happy with your neighbor. 

There are many commonalities of Renting and Buying: 

· Both have a level responsibility to maintain interior 

· You have to pay to live somewhere 

· Nonpayment can cause Foreclosure(for homeowner)or eviction(for the renter) 

· Dealing with neighbors 

· Wise to have insurance as a renter or homeowner 

· Rising cost (raised rent or raised taxes) 

Considerations of Buying  

· Stable job for the last 2 years 

· Can show 2 months bank statement  

· Have 2 years of w2 and Federal income tax 

· Good credit score above 580  

· Do you have a high amount of compared to your income 

· Show 30 days of my recent paystubs 

· Tired of paying a landlord’s investment  instead of my own 

· Want to build equity with homeownership to grow my asset 

· Tired of paying a landlord when I   overtime pay my mortgage and gain a   return on investment 

Considerations of Renting 

· Tired of the upkeep of a home 

· A home is too much space to take care of 

· Renting is cheaper for me 

· I want flexibility to relocate in less than 2years 

· I don’t have stable income 

· Not in a good position to buy 

· Don’t want the responsibility of   Homeownership 

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