If you are thinking about moving, you might be wondering if you should rent an apartment or condo or buy a house. If you have a stable career, friends and family nearby and you’re planning to stay in your area for a while, buying might be a good choice. On the other hand, if you’re not quite ready to commit to your location and need more flexibility, renting may be a better option. Weighing the pros and cons of each is important before making the big decision.
Renting pros & cons
- No home maintenance – If something goes wrong while renting all you have to do is reach out to your landlord/maintenance company and they will take care of it.
- No yard maintenance – Your complex takes care of all the lawn mowing, shoveling and landscaping. Saving you time and money on tools and equipment!
- Certain apartments will offer additional amenities such as a fitness center, a swimming pool, community room or a dog park that is usually included at no additional cost.
- Moving in is generally quicker than buying a home as some apartments can be available within a week.
- Space is limited as most one bedroom apartments are under 1000 sq. ft. If you need a lot of space or a yard, renting may not be the right choice for you.
- You will have neighbors living next to you, below you, and sometimes above you which results in potential noise that you cannot control.
- Your parking options may be on the street or outside. Depending on where you live you might have to pay extra for parking.
- Do you have pets? Some rentals do not allow pets or have an additional monthly pet fee.
Home ownership pros & cons
- A house offers more space for your family and storage.
- When purchasing a home, you are making an investment and building equity as the market value of your home appreciates.
- You have the ability to change what you want in the house whether it be remodeling your kitchen, painting the bedrooms, or adding an addition.
- Homes offer a lot more privacy than apartments.
- If appliances break down, you are responsible for replacing them. Equipment breakdown coverage can protect you from these unexpected repair costs. You will have to take care of the lawn and other home maintenance.
- Buying a house can be a time-consuming process as you will have more financial requirements than renting. You also usually need to wait for an inspection to be done.
- Know your budget. Buying a house is a bigger financial investment. Up front costs such as a down payment and closing costs are typically required. Also, be prepared for annual property taxes. But don’t worry, an escrow account can help you prepare for that.
Whether you decide to rent or buy, a Rural Mutual agent can provide you with a renters or homeowners policy customized to your needs. Contact your local Rural Mutual agent today for more information on homeowners and renters’ insurance.