Renting vs. Buying a Home: Which is Right for You?
If you’re looking for a new place to live, you’ve probably debated the idea of renting vs. buying a home. The truth is, there is no clear right answer to end this dispute. Ultimately, choosing to rent or buy entirely depends on your unique financial circumstances and long-term real estate goals.
Working with an experienced real estate expert like Mark Spain Real Estate will give you the clarity you need to rent or invest in a home. With decades of industry experience, our team offers valuable real estate recommendations to ensure you meet your long-term goals. If you’re teetering between the idea of renting vs. buying a home, allow us to help you come to a decision. Read below for our guide on renting vs. buying a home to discover which is right for you.
Renting vs. Buying a Home: Which is Right for You?
Equity
When you buy a home, you can build wealth based on your property’s value. Generally, houses rise in value over time, meaning eventually, you can sell the home and collect your home’s equity as a profit. However, home value can also decrease over time as well. Factors that affect home equity include economic issues, maintenance, environmental concerns, outdated interiors, exterior conditions, and housing supply. While these same conditions apply to a rented property, they will only affect the landlord. However, based on the value of your rented property, you might see fluctuations in rent. For example, if the property suffers damage from a rough storm, your landlord might decrease your monthly rent price to compensate.
Tax Implications
Another thing to consider when debating renting vs. buying a home is tax implications. Generally, buying a home comes with many tax benefits, specifically mortgage interest deductions. Mortgage interest deductions allow homeowners to deduct their interest on loans dedicated to building, buying, or improving their house from their total taxable income. 
This deduction can also be applied towards loans on second homes or vacation properties. When renting a home, you will not receive these valuable tax benefits. However, you might still be eligible to take the standard dedication available to all taxpayers.
Time Commitment
Depending on your lifestyle and long-term goals, homeownership might not be right for you. If you don’t plan to stay in your area for the long haul or you constantly travel, you might not want to invest in a home. The truth is that homeownership is a huge responsibility. Not only will you have long-term financial responsibilities, but you’ll also be in charge of your home’s general upkeep. If you’re at a point in life where you’re ready to settle down and invest, then buying a home is your answer. Otherwise, consider renting for a more short-term, low-commitment living situation.
Repairs and Maintenance
As we mentioned above, homeownership comes with many financial commitments—one of those being consistent repair and maintenance upkeep costs. From scheduling regular HVAC tune-ups to maintaining a working plumbing system, all of your home’s foundational workings will be your responsibility. 
You might be able to handle some of these maintenance tasks on your own, but most will likely have to be taken care of by a professional. So, before investing in a home, account for potential repair and maintenance expenses in your budget. If you’re renting, you won’t need to worry about these as your landlord will take on this responsibility.
Buy a Home with Mark Spain Real Estate
Do you want to buy a home? Put your trust in our experts! With decades of valuable real estate experience, the buying agents at Mark Spain Real Estate offer exclusive industry insight to help you find your dream home and a new chapter!
If you want to sell a home, check out our Guaranteed Offer Program! Our guaranteed offer participants receive the most competitive all-cash offers in the industry and close in as little as 21 days. Contact our agents today to learn more about our Guaranteed Offer Program and sell your home hassle-free!
Connect with us on Facebook, Instagram, Twitter, or LinkedIn to stay up to date with Mark Spain Real Estate!
Share:
Subscribe: