Buying Real Estate for Sale vs. Renting

Posted By: YourFriends AtSWMR In: Southwest Missouri Realty
Date: Fri, Aug 5th 2016 11:04 am

Why buy real estate for sale instead of renting?

If you haven’t already, you’ll probably face the difficult decision of whether to buy or rent a house at some point in your life. While buying a house is no doubt a huge investment, there are some serious benefits to buying instead of renting.

Buying Real Estate for Sale

Buying a house is a huge step and the process can be long and arduous. Hiring a realtor in Springfield, MO is the first step to improving your home buying experience and having a professional on your side to provide guidance can make all the difference – especially for first-time home buyers.

Advantages

Although the upfront costs of purchasing real estate for sale are often higher, the ability to build equity over time is invaluable. You can also make money off the later sale of your home by investing in home improvement projects to boost your home’s value.

Owning a home also opens up opportunity for investment property. When you purchase real estate for sale, you may decide to live in the home for a time. You then may decide to purchase a second home and rent your old home, using your tenant’s rent payments to pay off the mortgage.

Another great benefit to buying a home is that you have the freedom to do all the DIY projects you want. Replace fixtures, build a new garage, construct built-in bookshelf walls … the options are endless!

Additionally, most people who choose to buy real estate for sale instead of renting are looking to put down roots. Buying a home in a local Springfield community typically means you’ll be around for a while, therefore you’ll have plenty of time to get to know your neighbors, get involved in community programs and events, and invest in your community.

Disadvantages

When you purchase real estate for sale, there are a few initial costs to consider. These include the down payment, realtor fees, inspection fees, taxes, homeowner’s insurance and several other fees homeowners incur during the closing process. You also need to remember that there are ongoing costs associated with home ownership as well. These include maintenance, utilities, taxes, insurance and other home improvement costs.

Additionally, unlike renting a property, you are fully responsible for covering all the required maintenance and repairs, which requires both time and money on your part. Most homes also do not come pre-furnished, so you’ll need to account for those costs as well.

Renting Real Estate

There is certainly nothing wrong with renting real estate, and it really is the more affordable option for many people. The pros and cons will vary based on the individual and their situation, but here are a few of the advantages and disadvantages of renting vs. buying real estate for sale.

Advantages

One of the biggest financial advantages of renting a property is the fact that utilities and trash is often bundled with your monthly rent payment. Some apartment complexes or duplex properties may even include free Wi-Fi, with high-speed upgrades available for an additional fee.

Many people also choose to rent because of all the extra amenities they receive along with their housing. Several apartment complexes and duplex properties offer access to a pool, fitness center, laundry facility, or even an on-site dog park. The close availability of these amenities can help renters cut costs on gym memberships, finance payments on a washer and dryer and other similar expenses.

Renters are also not responsible for the costs of maintenance and repairs, and moving is much easier because they don’t have a home to sell. Typically, all that’s needed is a timely notice with the intent to vacate.

Disadvantages

Despite the many advantages of renting, individuals who choose to go that route give up the chance to build equity. Renters also do not receive any tax benefits, unlike homeowners.

Additionally, with a fixed mortgage rate, homeowners can expect to always pay the same amount each month. Renters, on the other hand, are subject to increases in rent from their landlord or property management company.

While renting a home may afford the same privacy as buying, an apartment complex or duplex does not. Apartment living often comes with loud neighbors, limited personal space and no backyard.

The choice to buy or rent a home is totally up to you. Once you’ve weighed the pros and cons of renting and buying real estate for sale, we are confident you will make the choice that’s best for you. If you feel that buying a home is your next step, contact Southwest Missouri Realty today. One of our experienced realtors will be happy to guide you through the home buying process.