Renting vs. Buying a Home: What are the Differences?

To rent or to buy? That is the question. It may be the biggest question you ever face, in fact. As trusted professional movers, we’ve seen our customers agonize over the decision and ask us for advice. So, we decided to put together this handy guide to help you figure out what you should do.

The truth is, both options have advantages. But it all depends on your situation. So, let’s dive into the differences between renting vs buying a home. 

Advantages of Renting

Renting comes with several advantages that make it particularly attractive for people on tight budgets. Here are three of the biggest ones.

No Maintenance or Repair Costs

Most folks who have rented all their life take for granted the fact that they don’t have to pay for major maintenance costs or repair bills. Those can be a huge expense for homeowners, with the average cost being 1% to 3% of the home’s value according to homelight.com. If a pipe bursts and floods your basement, you’ll need to find storage in order to salvaged your belongings and repair the damages which could cost thousands of dollars to fix and clean up — and YOU would have to pay that bill.

No Down Payment

Many people who rent but aspire to one day own a home face one very big obstacle: the down payment. According to Fool.com that an average home cost in the U.S. is $374,900, and the average down payment in America is 6%, that’s $22,494 you’d have to come up with. Not many people have that much saved up.

Greater Flexibility

When you rent, it’s a lot easier to pick up and move elsewhere if you need to. You don’t have to worry about putting your home on the market and finding a buyer. You may be tied to a lease, but once that lease runs out, you have no further ties to the property and can go wherever you want.

Advantages of Buying

A lot of people talk up home-buying, and for good reason. Here are a couple of the biggest advantages.

Builds Equity

One of the most oft-cited reasons to buy is that you build equity. Unlike with renting, where your monthly rent check simply goes into your landlord’s pocket, your mortgage payment means you gradually own a greater percentage of your home. This is known as equity, and you can borrow against it, giving you greater financial flexibility. Based on data from ipropertymanagement.com, the average monthly payments for a mortgage are $1,297 compared to $1,149 to rent. With such similar pricing, why not build equity and own something for yourself and your family? 

Control Monthly Costs

An underrated advantage to buying a home is simply being able to control your monthly payments. As inflation continues to increase and as rent continues to skyrocket nationwide year after year, by having a mortgage agreement with a bank with a fixed monthly mortgage payment, you don’t have to worry about your monthly payments going up. Since 2020, rent has increased 8% based on numbers from realeastatewitch.com. Leaving the monthly payment in the hands of a landlord is scary and can leave you in a terrible situation.

What We Recommend

We’re moving professionals who receive lots of moving questions, but at Shleppers we also often get asked about our opinions when it comes to buying or renting a home. The answer, for us, isn’t so  simple and varies person to person: if you can afford to buy a home, you should strongly consider it, as it allows you to build equity over time and avoid some of the inflation risks out there. But if you are on a tighter budget, it may be best to avoid the surprise costs that often come with homeownership and build up a nest egg that can eventually go to a down payment.

Whether you’re renting or buying, be sure to contact us when you’re ready to move. As trusted moving professionals we’ll make sure all your cherished belongings get to their destination in great shape. After all, moving is our shtick. 😉

Contact Shleppers Moving & Storage to get a FREE QUOTE for your move NOW!