Choosing to buy a house is one of the most significant decisions a person will make. Homeownership comes with a lot of responsibilities. It can also be a lucrative investment. Renting has many perks as well and is more flexible. Below is a helpful guide you can use to decide which is the best option for you.

Renting a House

Homeowners pay a landlord a fixed amount each month when they rent a home, just like a mortgage, but without the long-term commitment. It’s a flexible solution families choose if they want the freedom to move elsewhere or don’t anticipate being in the area for long. It’s also popular for trying different living options, such as a duplex, family home, or apartment. 

Landlords handle the general maintenance of the property and sometimes include utilities. This makes renting a convenient, low-maintenance option. Renting, at the most, requires the first and last month of rent and a security deposit. It’s much cheaper than the closing costs and down payment usually required for a home.

It is important to note that you won’t build equity while renting. A landlord may sell the property while your lease is still active or raise the rent if you re-sign your contract at the end of the term. You also rely on the landlord’s commitment to the property. Some may be less attentive or delay repairs. While you can take legal action, it’s still inconvenient.

Buying a Property 

It’s an investment when you choose to buy a house. Traditionally, you secure a mortgage through a lender and gradually pay it off at a fixed or variable interest rate. Each month, you gain a higher percentage of ownership. You also have the option to sell. If home values skyrocket in your area, you can make a significant profit even after paying the remaining mortgage balance.

You also have more freedom with homeownership. Make any upgrades you want, treat the property how you choose and enjoy having a permanent place to live.

Homes do cost more upfront. Closing costs, a down payment, and mortgage insurance can add up to thousands of dollars. You’re also tied to the home, making it more difficult to move elsewhere on a whim. There’s always the chance that home value decreases, and you’ll have to cover all repairs and maintenance. It’s crucial to work with a skilled real estate agent to find a reliable, quality home.

If you’re ready to buy a house, contact Jay Brower of Allen Tate Realtors®. Jay prides himself on working closely with clients to achieve their real estate goals. He operates throughout Greensboro, NC, and assists with both buying and selling residential real estate. You can start exploring home listings on his website or call (336) 337-1887 to schedule a consultation.