Deciding where to live can be a complicated decision. But figuring out if you should become a homeowner or a renter can be just as difficult. Maybe you’ve searched “first time home buyer Hawaii” and feel daunted by the prices that pop up. That’s okay, renting in some locations versus others may be a better option for you depending on your financial situation. If you have been tossing around the idea to rent or own a home, we’re here to help guide you to the right choice.
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Money Talks
One of the most important considerations in this process is figuring out where your budget lies. There’s different factors involved in home ownership vs renting when it comes down to cost. When owning a home, you will be responsible for your mortgage, home insurance, utilities, property taxes, and any repairs or updates that are required. While on the contrary, when you are renting you are responsible for a one time security deposit, monthly rent, and any utilities you are required to pay.
The upside of renting is that some or all of the utilities may be included; however, on the downside you will not be gaining equity on your investment as you would if you were a homeowner.
Are You Settled or Always on the Go?
Another factor to consider is your ability to relocate if you wish. It is strongly recommended to remain in a purchased home for at least three years to make up the costs of purchasing. While on the other hand, if you rent you are typically only required to stay for a year or less depending on your landlord.
So if you are looking to explore different locations, renting may be a better option for you.
Responsibilities
While both renting and owning a home comes with general responsibilities of upkeep and cleanliness. Homeownership is where you will see all of the responsibilities being yours. On the contrary, if you rent, repairs and updates will be the responsibility of the landlord.
Restrictions
The ability to redecorate, remodel, and so on vary in the renting vs owning world. If you own your home, you can do as you please with it. If you want to paint your bedroom a certain color all you have to do is buy the paint. However, when you are a renter you most likely won’t have these freedoms.
When renting it is always wise to consult with your landlord prior to making any changes as some landlords may be appreciative of you updating the space while others prefer you leave it as is.
Restrictions aren’t solely based on cosmetic issues either. Another factor to consider when asking yourself “Should I rent or buy a house?” is the allowance of pets. If you have a cat or dog, there are typically limited rental properties that allow animals.
Final Decision
Making the right decision on if you should rent or buy a house will solely be based on your needs and wants. Taking the above factors into consideration will help you make the best choice for your current circumstances. Whichever you choose to do, both renting and homeownership have advantages and disadvantages. Weigh the pros and the cons for each to determine your best option.