Choosing between renting or buying a home is one of the largest financial decisions you’ll make, and there are pros and cons to each of them. In recent years, more American households were renting than at any point since 1965, according to a Pew Center Research report.
What’s the better option when looking in the Northern NJ real estate market: renting or buying a home? Let’s break down the pros and cons of each.
What are The Advantages of Buying A Home?
If you’re certain you want to stay in the town you’re buying in for a long period of time, buying a home is your best option. Overtime, you’ll be able to build credit and equity, as well as possibly receive tax benefits.
Buying a house also grants you the freedom to renovate and decorate your home however you like. These improvements can increase its value if you later decide to sell it.
Are There Any Disadvantages to Buying a Home?
It’s no secret that houses can be expensive. When you buy a home, you run the risk of losing money if your house’s value decreases. You’re also responsible for any maintenance or remodeling that’s done to your house.
However, if you’re set on buying a home, there are steps you can take to save your money for a down payment on a house.
What Are Some Advantages to Renting A Home?
The #1 upside to renting a home is you’re able to have more mobility. With a lower upfront cost, less paperwork and no need to worry about your home’s value falling, renting a home is the ideal choice for people who want to move to another town in less than five years.
Renting a home also allows you to build your credit (only if your landlord reports your rent payments to the credit bureau), which can be another benefit for those looking to move within the next few years.
Finally, you’re not responsible for any maintenance or repairs. This means you won’t have to pay extra if any appliances unexpectedly break.
What are the Disadvantages of Renting?
Although your landlord is responsible for all of your house’s repairs, they’re responsible for the cost of the house too. This means your landlord can charge you more for rent or even sell the property entirely.
Renting a home also means you can’t build equity, nor can you receive tax breaks like homeowners.
If you’re looking to move, the cost of renting or buying a home depends on the location and the housing market. Luckily our Northern NJ real estate team is here to help. Simply connect with CENTURY 21 Semaio & Associates to help you decide on what’s the best option for you. For more real estate tips, check out our blog!
