Renting vs. Buying a Home

More people are buying homes during the pandemic, as real estate prices and mortgage rates have dropped dramatically. Additionally, as many Americans continue to work from home, they want more space for an office or spare room.

While renting and buying both have their advantages, they also have their disadvantages. This is a very personal decision that depends on one’s lifestyle and financial situation. Here are some pros of buying a home:

• Equity—Buying a house can build equity over time. If you have a fixed-rate mortgage, you won’t have to worry about rising rent costs.
• Tax implications—If you are eligible to itemize tax deductions, you may be able to write off mortgage interest payments.

Alternatively, here are some pros of renting:

• Home maintenance—Home repair and ongoing maintenance can add up over time. A good home inspection might shed light on potential red flags. If you’re renting, those household responsibilities usually fall on the landlord.
• Flexibility—Renting can be a great option if you’re hesitant to buy due to a recent move to a new area, unstable employment or other life changes.

Search online for a “Rent vs. Buy” calculator to discover estimated everyday costs and determine how affordable each option is for you. It may be helpful to talk with a trusted real estate agent to decide what’s best, as there are pros and cons to both choices.

Whether you decide to rent or purchase a new home, we hope you'll give our team a call! We can help you find the coverage you need.