{"id":615,"date":"2016-04-20T09:30:49","date_gmt":"2016-04-20T13:30:49","guid":{"rendered":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/?p=615"},"modified":"2017-01-04T17:04:15","modified_gmt":"2017-01-04T22:04:15","slug":"buying-vs-renting-the-pros-and-cons","status":"publish","type":"post","link":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/2016\/04\/20\/buying-vs-renting-the-pros-and-cons\/","title":{"rendered":"Buying vs. Renting: The Pros and Cons"},"content":{"rendered":"<p><a href=\"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-content\/uploads\/2016\/04\/For-Rent.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignright size-full wp-image-1053\" src=\"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-content\/uploads\/2016\/04\/For-Rent.jpg\" alt=\"Home for Rent\" width=\"812\" height=\"591\" srcset=\"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-content\/uploads\/2016\/04\/For-Rent.jpg 812w, https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-content\/uploads\/2016\/04\/For-Rent-300x218.jpg 300w, https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-content\/uploads\/2016\/04\/For-Rent-412x300.jpg 412w\" sizes=\"(max-width: 812px) 100vw, 812px\" \/><\/a><\/p>\n<p>Many people in this country have a \u201crenting mentality\u201d that renting an apartment is cheaper and therefore better than buying your own home. However, the costs of renting are going up exponentially, and in many areas can be as much as a monthly mortgage on a home. In fact, the <a href=\"http:\/\/www.nytimes.com\/2014\/04\/15\/business\/more-renters-find-30-affordability-ratio-unattainable.html?_r=0\" target=\"_blank\">NY Times<\/a> reports that in order for rent and utilities to be considered affordable, they should take up no more than 30 percent of a household\u2019s income; however, that is becoming harder and harder for middle-income families in this tightening market that\u2019s pushing up rent costs.<\/p>\n<p>Let\u2019s take a look at the financial benefits of buying vs. renting. When will you be ready to buy a house?<\/p>\n<p><strong>Renting<\/strong><\/p>\n<p>Pros<\/p>\n<ul>\n<li>No maintenance required, as the landlord takes care of broken appliances, exterior maintenance, etc.<\/li>\n<li>Less commitment: It\u2019s easier to relocate for business or a short-term stay when you\u2019re on a month-to-month lease.<\/li>\n<li>Avoid depreciating assets<\/li>\n<\/ul>\n<p>Cons<\/p>\n<ul>\n<li>Rent payments can increase at the end of the lease agreement.<\/li>\n<li>Can\u2019t build equity like you can in a home.<\/li>\n<li>Don\u2019t get tax benefits.<\/li>\n<li>No control over living space: Can\u2019t make major d\u00e9cor or renovation changes without approval from landlord.<\/li>\n<\/ul>\n<p><strong>Buying<\/strong><\/p>\n<p>Pros<\/p>\n<ul>\n<li>You can build equity: a good thing since homes typically rise in value from four to six percent each year.<\/li>\n<li>Take advantage of tax breaks for homeowners, deducting your mortgage interest payments and property taxes.<\/li>\n<li>Mortgage payments remain stable over the term of the loan, provided you have a fixed-rate mortgage.<\/li>\n<li>Your home is an investment that you can rent out and receive income for.<\/li>\n<li>You become part of a community that you\u2019re invested in, getting to know your neighbors, participating in community events and building roots for your children\u2019s future.<\/li>\n<li>You can make any d\u00e9cor and renovation changes you want. Even if you belong to a homeowner\u2019s association, those organizations generally dictate how the exterior can look, not the inside, so you still have freedom.<\/li>\n<\/ul>\n<p>Cons<\/p>\n<ul>\n<li>You have to do and pay for your own maintenance, such as landscaping, plowing, appliance fixes and window replacement.<\/li>\n<li>A home is not very liquid, meaning if you had to sell it quickly due to a divorce or job relocation, you may take a loss on it or you may not be able to sell it in time.<\/li>\n<li>You have to pay property taxes, which can go up year to year.<\/li>\n<li>While it usually does increase in value over time, this isn\u2019t a guarantee. Your home can lose value over the years, especially in times of volatility.<\/li>\n<li>You must invest at least some cash in your home as a down payment, along with cash for closing costs that you won\u2019t have available for other investments.<\/li>\n<li>You need to pay for homeowner\u2019s insurance, whereas renter\u2019s insurance is not always a requirement.<\/li>\n<\/ul>\n<p>If buying a home is right for you, give Judd Builders a call today to get started on the home of your dreams!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many people in this country have a \u201crenting mentality\u201d that renting an apartment is cheaper and therefore better than buying your own [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[14],"tags":[29,30,32],"aioseo_notices":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/posts\/615"}],"collection":[{"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/comments?post=615"}],"version-history":[{"count":3,"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/posts\/615\/revisions"}],"predecessor-version":[{"id":1054,"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/posts\/615\/revisions\/1054"}],"wp:attachment":[{"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/media?parent=615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/categories?post=615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/wp-json\/wp\/v2\/tags?post=615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}