Rent Or Buy? Make An Informed Decision
Making the decision between renting or buying homes in Prior Lake, MN is a difficult choice. You have saved yourself enough money to make a down payment for a house, when you are suddenly struck with the thought that why don’t you rent a house and not buy one. When choosing between renting and buying, a number of items need to be considered in your final decision. There are pros and cons with both renting and buying. When you are faced with this tough decision, here are the pros and cons of both choices. Take a look and make an informed decision.
Buying a House
Pros
- You Build Equity Over Time
When you buy a house, you build your equity. You have the ownership of the house.
- Creative Freedom
It is your house. You can decorate it any way you want to and make any changes to it any time you like.
- A Source of Income
You can turn your home into a source of income by renting it out when needed.
Cons
- High Upfront Cost
You need to pay a high upfront cost (5.5% of the value) if you choose to buy a house.
- Maintenance and Repair
Since you are the owner of the house, you are responsible for its maintenance and repair.
- Furnishing Cost
In addition to the cost of buying, you also need to pay for the cost of furnishing the house.
Renting a House
Pros
- Ease of Relocation
Relocation is easy, less costly and less time consuming if you are on rent.
- Maintenance and Repair
Maintenance and repair of the house is not your responsibility.
- Real Estate Fluctuations
The fluctuations in the real estate market do not impact you but the homeowner.
Cons
- No Equity Building
Unlike home ownership, you do not build equity rather every penny you pay in rent is gone forever.
- Limited Security
Your homeowner can ask you to vacate the house any time they want (with a notice period).
- Limited Creativity
You cannot go all creative in someone else’s house. Thus, you have limited options.
The Final Word
Now that you are aware of all the pros and cons that come with renting or buying homes in Prior Lake, MN, you can make an informed decision. Choose the option you think will suit you the best. If you cannot still make up your mind, you can consult the specialists at Loyal Partner Homes for help.