Renting vs. Buying
Moving is a difficult process. Making the decision on whether to lease or buy is a complicated process. U.S. homeownership is declining due to many factors. Retirees downsizing and leasing, high student debt preventing young buyers from affording the up-front costs and making down payments, and elevated home prices in high-population real estate markets.
What are the Advantages and Disadvantages of Renting and Buying?
Costs of Renting a Home
- Upfront costs – security deposit, first month’s rent, nonrefundable deposits, last month’s rent, utility deposits.
- Recurring costs – monthly rent, renters insurance, utilities.
Costs of Buying a Homes
- Upfront costs – appraisal fees, survey fees, lender fees, title insurance, closing costs.
- Recurring costs – mortgage payments, property taxes, homeowners insurance, HOA fees, mortgage insurance, utilities.
Advantages of Buying a Home
- Building equity over time.
- Homestead protection from creditors.
- Federal tax deductions.
- Potential for rental income.
- More creative potential.
- Sense of community.
Disadvantages of Buying a Home
- Potential for financial loss.
- Responsibility for maintenance and repairs.
- Most homes are not sold furnished
- High upfront costs.
Advantages of Renting a Home
- No maintenance or repairs.
- It is easier to relocate quickly.
- You do not have to worry about how the real estate market is faring.
- The credit requirements are not as strict.
- Utilities may be included.
Disadvantages of Renting a Home
- No federal tax benefits.
- Limited control over housing costs.
- No equity building.
- Limited housing security.
The New York Times has a calculator: While this calculator weighs the known financial costs associated with renting and buying, so it can help you decide whether leasing or buying makes the most financial sense, but you must make the final decision.
Florida National Title Services
Florida National Title Services provides expert title services and researches the title to make sure the home belongs to the seller. Whether you are renting or buying, we can help with every step of the way.
Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase and refinance experience and have helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to understand the process better and to help them avoid many of the pitfalls. Call us at (561) 408-0729 or visit our website.
Florida National Title Services, LLC
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458
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