If you’re new to the housing market or trying to decide if it’s better for you to rent or buy a new home, there are a lot of things to consider. After all, it is a big decision, and you want to make sure that you choose the option that best fits your needs. Keep reading to learn some of the pros and cons of renting vs. buying a house, and hopefully, you’ll leave with a better idea of what you want to do.
Buying a New Home
For most people, it is a dream to one day purchase a home that they can officially call their own. However, buying a home can come with its own set of hidden costs and benefits.
Pros
The most obvious benefit of owning a home is exactly that — you own it. There is no landlord or property management company involved, so you have the freedom to do what you want with your property, whether that means turning your garage into a workshop or getting all the pets you’ve wanted since you were a kid.
Secondly, buying a home is an investment. With Idaho property values steadily increasing over the last 8 years, you can expect that when you decide to move on and sell your home, it will be worth more than when you bought it. Finally, there are certain tax breaks that can come from owning a home, including deductibles on mortgage insurance and property taxes. However, the benefits of buying can come at a cost.
Cons
Price plays a major role in the decision of whether to buy or rent a house. Between the down payment, closing costs, repairs, and renovations, the potential initial investment of buying a home can be enough to steer some people away. Additionally, you become responsible for any maintenance, HOA duties, and homeowner’s insurance that comes with purchasing a home. As these costs can quickly add up, it might lead you to sacrifice desired features in order to get something within your budget.
Renting
Renting an apartment, home, or condo in the Treasure Valley can be a great alternative for people that can’t afford the inflated home costs and rising property taxes. While renting might not necessarily be the end goal, the pros definitely seem to outweigh the cons.
Pros
The affordability of renting gives you significantly more options when it comes to getting what you want. The fixed monthly rent combined with lower insurance and utility costs gives you a better sense of security and routine, which can help you better manage your money.
The flexibility that comes with renting can also be a convincing perk. Once your lease is up, you have the option of renewing the lease or moving to somewhere new that better fits your lifestyle needs and budget.
When renting, your landlord or property management company typically handles most of the maintenance and repairs that would be your responsibility if you buy a home. In this way, it can be more convenient and hassle-free for you to rent rather than doing it on your own.
Cons
Renting a home or apartment means that you are bound by the terms of your lease agreement, so there are limitations on what you can do while living there. You won’t be able to knock down any walls or build an in-ground pool in the backyard. Additionally, you won’t be able to receive the same tax benefits or build the equity that you would when buying a home. However, if you choose the right property management company, they will work with you and your individual situation to find a solution that’s right for you.
Why Iron Eagle?
When you work with Iron Eagle Property Management, you can know that you are getting the professionalism, respect, and concern you deserve as a renter or homeowner. We treat each of our properties with the same care and effort we put into our own homes. If you are considering renting a property in the Treasure Valley or have any questions about renting, give us a call and we would be happy to help you!