Buy or Rent a Home

Kathleen Magat February 15, 2024

When it comes to renting or buying a home, there are pros and cons. But when it makes financial sense for the buyer to purchase a home, I’m definitely for home ownership!

For those that love renting, I get it. Not having to fix things when they stop working can be a BIG sigh of relief. But renting isn’t as “hands off” as many people think. You’ve actually been paying for repairs without even knowing it. Plus, in most areas, renting actually costs more per month than a mortgage for the same space!

Return on Investment. When you own a home, you not only get tax deductions, but your mortgage also can’t go up due to inflation or deflation. And you’re building up tons of equity, which means you’ll end up with more cash for retirement or a downpayment on your next home when you sell.
Rent Money Goes to Your Landlord. Home owners are basically paying into a stable investment every month when they pay their mortgages. Renters are paying a mortgage, too, but they’re not getting any long term benefits from it – the landlord is. Generally speaking, landlords increase rent every year. When you consider that their mortgages aren’t likely increasing every year, that means the money is going into their own pockets.
Rent Costs are Up. Right now, many rent costs are up at least 10% nationwide. Some major cities are up more than twice that! Austin isn’t exempt from this.
Stability. The tenant-landlord relationship is notoriously tricky. Landlords write the contract, name their price, and control pretty much everything about the place you call home. They can enter your home, hire their own repairmen, or even sell the home… and there’s not a lot you can do about it. When you own, you have greater control over all of these things.

With rentals, you compromise on many things like financial freedom, space, how many pets you can have (or what breed they are), and even the number of cars you can have in your driveway. These can all be deal breakers for many families – which is why, for most, it’s better to own than rent.

If you’re thinking about making a move (or know someone who is), I can help! I’m here to provide helpful advice and guidance you need. Just click here and we can chat.