Owning or renting? Opinions differ, and you will come across supporters of both – but the question is, which option is the best for you? While both come with advantages and disadvantages, it is ultimately a matter of priorities and finances.
Prior to making any decision, take into account aspects such as your lifestyle, you family’s needs, your financial position or your future plans.
Advantages of owning a home:
- Fixed-rate mortgage – Your principal and interest payments will be the same for the entire duration of the loan, no additions.
- A house can be a source of revenue – If over the years you decide to move, you have the possibility to rent your house out, thus obtaining a new source of income.
- You can be part of a community – Once you own a house and you know you will live there for years to come, you might be more inclined to bond with your neighbors and establish life lasting friendships.
- You can improve your property – You will be fully entitled to make any changes on your property, in order to improve your lifestyle and refresh your home.
- You can make plans for the future – Owning a property gives you the freedom to plan for the future knowing that there is no need for you to move any time soon.
- You control everything – From the color palette in your bedroom, to renovation projects and home additions.
Advantages of renting a home:
- There is no long term commitment – Especially if your job requires you to move frequently, renting is the best option for you.
- No maintenance required – Besides the daily cleaning chores, it is not your responsibility to invest in the property you are renting. For example, if a pipe breaks in the house, your landlord will be in charge of fixing it.
- You are not exposed to real estate market changes – A home’s value fluctuates depending on the economy, which can often led to depreciation in the property’s value. This, however, will not affect you as a renter.
Disadvantages of owning a home:
- Long-term financial commitment – Owning a home means you will have to take care of every financial aspect: from paying your taxes, to paying a mortgage, to paying for maintenance and more.
Tip: Gialluisi Custom Homes is the only company in Westfield that provides free home maintenance services years after you move in.
- The property’s value may decrease – If you are suddenly forced to move, you may not be able to sell your house as fast as you want, for the price you want. This depends mostly on the real estate market fluctuation.
Disadvantages of renting a home:
- There are no fixed housing costs – Your rent can go up from year to year, unlike the fixed-rate mortgage you get when you buy a home.
- You can not build equity – Sure, you will have a nice place to live in, but when you will want to move, you will not be able to sell your home.
- You can not make any changes – One of the biggest disadvantages of renting a home is the fact that you are not allowed to make any changes without your landlord’s permission.
Are you ready to move in?
Now that you have a clearer image of the differences between buying and renting, it is up to you to decide how you want to invest your money.
If you are interested in purchasing a home in Westfield or the surrounding areas, take a look at our homes for sale.
If you consider renting as being a more appropriate option for you, see the Gialluisi custom made condominiums – available for sale or for rent in Newark and Morristown.
Build your dream home with us
Enjoy the benefits of our Built To Suit program:
- Build your home on a lot you already have (or we can help you find the perfect one)
- Customize everything about your home
- Enjoy reduced downpayment (only 10% upfront)
- Get assistance in finding the best financing solution for your needs
Call 908-206-4659 for any additional information or get in touch with one of our team members here.