What are the Pros and Cons of Renting?
Although, investing in a property may seem like a tempting option, but it is not deemed fit for everyone. Before heading towards becoming a homeowner, you must consider a few factors. Here are some listed pros and cons by the very real estate experts of the strand Galveston about owning a home or staying a tenant throughout your life.
Pros of renting
- It offers flexibility
When you rent, you are only stood bound for the duration of your contract. When you purchase, you are bounding yourself to the location for the imminent years to come. If you are uncertain about setting in this very property for the next five years, you must consider investing in something other than real estate.
- No need to worry about maintenance
When you rent a place, the maintenance is the responsibility of the landlord. Mortgage rate may be lower than the rent prices, but a lot of it is made up in the maintenance fees. If you are not in a condition to save a lump sum amount of money for home emergencies, or not fond of the idea to deal with the plumbing, then you might consider staying as a tenant.
- Gives time to build yourself a credit
Millennials are too tempted to buy homes, but the student loan debt keeps them at bay from getting the mortgage rate they want. Renting provides you a window of time to look after your current debt and build your credit so as to when your time strikes to buy a property, you can gain the mortgage rate you actually deserve.
Cons of Renting
- Less stability
Increased rent, eviction, and stringent rules are the very factors you have to be concerned about when you stay as a tenant. As a homeowner, these matters are none of your concern.
- It’s not an investment
Usually, mortgage rates are lower than the rental fees. Due to this, you gain more space for the amount that you spend on the rent correctly. Also, your home is an investment. Every month, your mortgage payment acts more like an investment into your future and the rent checks are gone forever.
- You don’t know the market condition when it’s time to buy
If you are experiencing a buyer’s market when your credit isn’t in position, you may be compelled to enter the housing market to guarantee the optimal prices. Investments are always risky, and you might want to consider this when you decide to rent or buy.