Renting vs. Buying: Which is Right For you?
There are many factors to consider when deciding whether to rent or buy a home. Some may be in a position to do either, while others may only have the option of renting.
Asking yourself a few simple questions could be a good jumping off point to determine your options.
- Are there homes for rent/sale in your city of choice that meet your needs?
- What can you afford monthly and what can you afford upfront?
- Are you looking for stability or flexibility?
- How long do you intend to stay?
- Are you prepared to be financially responsible for maintenance and repairs?
After reviewing these questions you should have an idea of what will work best for you. If you have the option of renting or buying, but are still unsure of what to do, take a look at the chart below to see some of the pros and cons of each decision.
For most, cost will be the number one factor in determining whether to rent or buy. Both processes will require you to have good credit and stable job history, but purchasing a home will require substantially more money up front for a down payment and closing costs. Renting, on the other hand, typically requires a security deposit equal to one or two times the rent, plus the first month’s rent payment. Of course, the deposit will vary based on the rent amount, but overall you will likely pay less upfront to rent vs. buy.
People move to new cities all the time for various reasons. Whether it’s for a new job opportunity, different lifestyle or to be closer to family, everyone has certain motivating factors. When relocating to an unfamiliar area, it could be beneficial to rent for a period of time to decide if it’s a good fit before buying. Renting allows you more flexibility in that you can move after your lease is up if you decide that location is not for you. However, you are limited with renting in terms of making changes or upgrades to the home. If you don’t like the wall color or type of flooring, you are mostly likely stuck with it since it’s not your property.
For those who are pet lovers, it could be more difficult than expected to find a pet-friendly rental property. Rental owners are often hesitant to allow pets because of the risk for potential damage; especially if they’ve had a bad experience in the past. Unfortunately, this can limit the available rental options, making it more difficult for pet owners to move when looking for a rental.
Be sure to take all things into consideration, whatever you decide to do. Ultimately, your deciding factors may look different than others, but it’s important to do what works best for you and your situation. At Barrett Property Management, we are a team of licensed Realtors® who specialize in both sales and rental management. If you are looking to move to the Placer or Nevada County area, we would be happy to assist you in finding a rental or buying a home!
