Whether to buy or rent a home is a personal decision that depends on a variety of factors, including your financial situation, lifestyle, and personal goals. There are pros and cons to both renting and buying, so it’s important to weigh all of your options before making a decision.
Benefits of buying a home
Build equity: When you buy a home, you’re essentially investing in an asset that can appreciate in value (over time). This means that you could potentially make money when you sell the home in the future. But keep in mind that while sometimes home prices increase very quickly, sometimes they dip and take time to recover. Real estate prices aren’t immune to economic downturns. Recessions and major events can cause prices to dip. While they typically rebound, it can take time. Additionally, an increase in overall prices (inflation) can make it seem like real estate values are rising when in reality— they’re just keeping pace. Finally, every time you buy or sell there are closing costs. Generally, it is a good rule of thumb to plan to stay in the home for at least 5 years to recoup those costs and give the market time to trend upward.
Tax deductions: Homeowners can deduct mortgage interest and property taxes from their federal income taxes. This can save you a significant amount of money each year.
Making it your own: One of the things that drove me crazy when I was a renter in my twenties was not being able to personalize the space. When you own a home you can paint, remodel and landscape to your heart’s content! Bye, bye apartment beige!
Sense of stability: Homeownership can provide a sense of stability and security. You know that you have a place to live for the foreseeable future, and you don’t have to worry about your rent going up or your landlord selling the property. This is huge. Rents in Oro Valley and other areas of Tucson have absolutely skyrocketed the last few years and landlords are tacking on more and more junk fees. It can be an unpleasant shock if your landlord raises the rent beyond your ability to pay or gives you notice that they are not renewing your lease so they can sell or convert the property.
Benefits of renting a home
Flexibility: Renting gives you the flexibility to move whenever you want. This is a great option if you’re not sure where you want to settle down or if you’re planning on moving for a job or other reason.
No maintenance or repairs: When you rent, your landlord is responsible for all maintenance and repairs. This means that you don’t have to worry about things like landscaping, fixing a leaky faucet or replacing a broken window.
Less upfront costs: Renting typically requires less upfront costs than buying a home. This includes things like a down payment, closing costs, and property taxes.
Ultimately, the decision of whether to buy or rent a home is a deeply personal one, depending on your circumstances and goals. Having a good, upfront real estate agent who can help you navigate the pros and cons of this based on your situation and the local market is crucial. We have explained to some of our clients over the years why it would be better for them to rent at that time—and have been rewarded when they let their friends or family know about us when they wanted to buy or sell their homes. We never want you to be in a position that will cause stress down the line! Feel free to contact us anytime to discuss whether buying or renting is a good option for you.
