Choosing to either buy or rent a home can be a hard decision. This never-ending debate has been going on for decades, but each option has pros and cons. There are plenty of reasons to either buy or rent a home, but it ultimately comes down to what option is the best fit for you. If you are looking to buy a home in Atlanta, a study conducted by SmartAsset in 2018, noted that Atlanta was named as one of the top 20 areas where buying is a better choice than renting.
The value of Atlanta real estate is undeniable. Therefore, Atlanta is a great city to become a homeowner. As the Atlanta leader in real estate and new development, we want to help you make the best decision when choosing your dream home. Below, we’ve shared the pros and cons of buying and renting to help you in the decision-making process.
Pros of buying a home
Make an investment
Once you purchase a house, it’s yours and becomes an asset. Historically buying a home generates personal wealth and can earn you equity. As a homeowner you’re no longer throwing away money on rent. In fact, owning might be a cheaper alternative than renting because of the low interest rates. Therefore, the monthly mortgage payment may be cheaper than rent in the area. Investing in a home can not only improve your credit score but also offers long-term benefits and potential growth in personal wealth.
As a homeowner you are eligible for tax benefits. Mortgage interest and property taxes remain tax deductible for many Intown Atlanta home buyers. When selling a home, homeowners can make money and take the profits tax free.
With ownership comes great responsibility, but it also gives you the opportunity to truly make a home your own. Being your own landlord gives you the freedom to remodel and redecorate your space however you want to with no restrictions. This makes buying a home worth it.
Cons of buying a home
Housing Market uncertainty
In time, you’ll probably want to sell your home. Depending on the current housing market, your home may be worth more or even less than what you paid for. Because of market uncertainty or even unforeseen circumstances, it could take months before your home sells and you can move.
Buying a home is a long-term commitment. With the mortgage, taxes, and additional fees, changing your mind about where you want to live airs on the more expensive side when you own. While there is less flexibility when it come to moving, investing in a home provides stability and pride of ownership.
Pros of renting
Renting an apartment has less maintenance than buying a home. When you rent you don’t have to worry about taking care of a leaking roof or things breaking down. Your landlord will be responsible for fixing any problems.
Flexibility is one of the biggest reason people choose to rent. If you know you won’t be living in a single area for a long period of time, renting is the better option. If you own a home, you have to worry about selling first before you can move, but renting gives you more mobility because it is a easy move as soon as your lease ends.
Fewer upfront expenses
Rental prices are usually much cheaper than a mortgage payment, saving you thousands of dollars a year. When you purchase a home there a many out-of-pocket costs like a down payment or closing costs. Renting also avoids real estate taxes. For example, a 3 bed / 2 bath bungalow can come with real estate taxes of $10,000 a year, so if you can’t financially afford the costs that come with buying a home, renting would be the better option.
Cons of renting a home
Rules, Regulations and limitations
When you sign a lease for an apartment, the landlord usually includes limitations and guidelines for making any changes in your space. As a renter you are typically not allowed to paint or remodel your property without authorization. For example, putting in new carpet, changing appliances, or upgrading any part of your home would only be allowed with permission from the landlord.
No return on investment
Even though you are paying for your current place, you won’t receive any money in return. Any renovations or investments all go to your landlord.
Ultimately, choosing to either buy or rent is a personal decision. While buying can be a risk, it pays off in the long run. If you think you are ready to invest in a home, check out our homebuying guide. Our seasoned real estate advisors would be happy to assist you with your next real estate transaction. For more information call us at 404.854.7224 or visit our website https://evatlanta.com.