Heading into 2023, you’re probably wondering whether it makes more sense to rent or buy. Many buyers held off last year due to the rise in interest rates and limited inventory, but you might be in a position now where you have to decide.
Cost
You usually pay for your monthly rent and utilities when renting a home. Other potential rental costs include pet fees, parking fees, laundry fees, and more, depending on your lease.
When purchasing a home, many upfront costs can be a huge barrier for potential buyers, including down payment and closing costs. Once you own the home, you have your monthly mortgage payments, taxes, homeowners insurance, repairs, upkeep, and more.
Looking at it this way, it seems like renting makes more sense, right? Maybe if you plan to only rent for a few years, it makes sense. But long term, the money you put into renting, you could save up for a down payment and start building equity.
Location
In more high-priced real estate markets, renting could be a more affordable option than buying. Austin has become a very popular market, and you can usually find somewhere to rent for cheaper than it would be to buy. However, due to its popularity, the likelihood of your home appreciating is also high, so when it comes time to sell, you’ll most likely make a profit.
Stability
Renting a property gives you more flexibility than if you owned a property. So if you’re planning to rent a property on a more short-term basis, there’s more ease to move somewhere new if you need to. However, more flexibility comes with less stability. Landlords may decide to modify the lease terms or sell the property suddenly, leaving you to have to come up with an alternative.
Owning a property gives you complete control over all aspects of the home, from how you decorate to when you decide to sell. In addition, you also have financial predictability because you will know exactly how much money you have to pay per month; your fixed-rate mortgage payment will not change.
Renting isn’t always cheaper, and buying a home isn’t as scary as it seems. If you have questions about whether buying or renting is the right choice for you, please reach out to us! We would love to be a resource for you!
