Renting vs Buying – What’s Best in 2017

Overview

There are advantages and disadvantages leasing a property, just as there are to possessing a home. Both preferences have their own returns and shortcomings. The answer to whether buying or renting is better largely depends on your personal profile and preference. Let’s focus at all the advantages and disadvantages to assist you in making a sound decision of what will suit you, right now.

At some point in time you reach a level where you choose whether to buy or rent a home. The decision that is then made is often based on the financial factors involved over a long-term period. Here is a summary of all the costs incurred by a homeowner and a tenant.

When entering the property market, those wishing to rent a property encounter very low start-up costs compared to the big upfront expenditures involved in purchasing property.

Purchasing a home is now more reasonable than renting in most places, but there could be changes on the way.

According to the ATTOM Data Solutions 2017 Rental Affordability Report, which analyzed data from 540 counties nationwide, buying a home is the more affordable housing option in 66 percent of the markets, up from 58 percent last year. However, the potential for rising interest rates this year could put up barriers to buying a home and keep potential homeowners renting.

Here’s what you need to know about the current real estate market and what to look for as the year goes on.

Buying outdoes renting most of the time

Buying is often recommended over renting in the long term because your mortgage payments build equity in your home – which you’ll eventually own – while your rent only goes toward maintenance and your landlord’s wallet. However, in today’s real estate market the monthly costs of buying are also preferable to renting.