Pros & Cons Of Renting A Home Instead Of Buying
You are in a good spot financially and know that you could be approved for a home mortgage loan, but you are not quite sure if buying a home is the right choice for you at the moment. In some situations, considering home properties for rent is a more viable choice. Take a look at the pros and cons of renting over buying to help you make the right decision.
Pro: Renting a property does not require a long-term commitment.
If you rent a home, the only thing that you will have to commit to is a lease agreement, which usually runs in terms of a year or less. Some properties are available on a month-to-month basis with no commitment at all. If you're not quite sure if you want to live in a certain area long term, renting can be the most logical decision.
Con: Renting a property means you will be limited with what you can do to the property.
If you are renting a property, there will be definitive outlines in the lease agreement about what you can and cannot do to the property. For example, most property owners will prefer that you do not make any structural changes, change the landscaping drastically, or even paint the walls without permission. Of course, if you buy a property, whatever you choose to do to that property is up to you.
Pro: You won't be responsible for property repairs as a renter.
When you buy a home, all maintenance becomes your responsibility. For example, if you have a leaking roof, a bad hot water heater, or a problem with the furnace, as the owner, it will be your place to handle these issues. On the other hand, if you rent a home, these obligations belong to the property owner, which means you will avoid costs associated with property maintenance.
Con: Property rental may require you to invest in renter's insurance.
If you buy a home, you will need to invest in homeowners insurance to protect the home and property. However, if you rent a property, you will likely want to pick up renter's insurance that will cover your belongings if something happens to the house. The person who owns the home rental will be responsible for carrying homeowners insurance, but your belongings will not be covered under this policy. Some landlords will actually require renter's insurance as part of the lease agreement.