Table of Contents
- What Are Netting Escrows & How Does It Work?: The Best Guide - January 2, 2024
- The Secret About Prescriptive Easement: Top Guide 1 Must Know - December 4, 2023
- About Home Equity Loans In Texas And How Can One Obtain It - November 27, 2023
About Renting vs Buying a Home
Buying your own house is one of the most important decisions you can make to start acquiring assets and build equity.
However, a lot of people get intimidated when they hear stories about losing money if they purchase a new house.
Also, we need to ask ourselves a few questions – am I financially committed? Am I ready to take responsibility?
There is a part of the American dream that is built on owning a house because how much the homes have appreciated has made the cost of renting more affordable.
Of course, buying or renting depends on the area as the cost differs from area to area. Let us compare the pros and cons of Renting vs Buying a home.
There is also a misconception saying that buying a home is always better than renting, which is not still true. Many people think that renting is a waste of money, and buying a home is always beneficial.
When you are considering the cost of renting vs buying a home in Texas, people don’t fathom the cost of ownership.
Let us remember one thing that no matter what, there is always going to be a cost for putting a roof over your head either you are paying that in the form of rent, or you are paying property taxes or adding value to the house by structural changes you might have to do in case of homeownership.
Renting vs buying a home is an age-old comparison. You may have to consider many things before you decide which is the best option for you.
So let us compare the pros and cons of Renting vs Buying a home.
Renting a Home in Texas
The Renting Pros:
- You can have a low credit score and still rent.
- You are not obligated to a mortgage.
- You don’t have to take care of the maintenance, property taxes, and insurance.
- It would be easier for you to relocate anytime.
- Don’t have to worry about property depreciation in your neighborhood.
The Renting Cons:
- Rent is higher than mortgage payments.
- Share walls with neighbors (In the case of an apartment or a Duplex).
- No equity hence no asset.
- Restrictions on pets and other freedoms.
- Rent could rise at any time.
- Owners can sell the house at any time and can ask you to leave.
Buying a Home in Texas
The Buying Pros:
- You are building up equity by paying your mortgage.
- Tax benefits.
- Your property appreciation would add to your equity.
- Creative control: Renovations, decorations, etc.
The Buying Cons:
- More secondary costs – Maintenance, taxes, and insurance.
- You must qualify with income/credit. However, there are programs for low income and credit.
- If property value depreciates the equity goes down.
- You are obligated to a mortgage.
Conclusion
Based on the above comparison for Renting vs. Buying a home in Texas, an individual may decide which one is good according to their lifestyle.
If you have good credit and income, we would always suggest buying a home instead of renting.
It would yield you an asset that you can use as an investment and make more money either by renting the property or by selling and getting value for the money you have invested.
If you are planting your roots, meaning, if you are going to live in a community, raise children in this community, the children would be going to the local school we suggest buying.
On the other spectrum, renting allows you much more mobility and could end up saving you a lot of money as well.
A lot of people today may move from one job to another every few years, and renting could help them save a lot of money.
These are the things that you may want to consider when it comes to renting vs buying a home in Texas.
To understand the process of purchasing a new home, you can read one of our previous blogs Five-Step Guide For New Property Purchase.
