When it comes to buying versus renting, each option has its share of pros and cons, but buying is far more beneficial to you.
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Which is the better option—buying or renting? Each path has its own pros and cons.
If you don’t know where you’re going to live or you’re moving within the next year, you’re better off renting. In our Columbia market, it’s tough to get your money back out of a house in just a year. Another reason to rent is if you think the market is depreciating.
That said, there are a number of advantages to buying over renting.
My advice is to buy every time.
For one thing, you’re paying off a principal, so buying a home in an appreciating market acts like a forced savings account. In the greater Columbia area, we’re appreciating at a rate of about 4% per year, so think of buying as a 4% savings account versus throwing your money away on a rental. You can also write off your interest expense on your taxes when you buy a home. There is one drawback when it comes to buying, though, and that’s the maintenance costs. If the air conditioner or another appliance fails, it’s up to you to repair or replace it. You can get a home warranty to mitigate some of these issues, though. If you have any more questions about whether you should buy or rent in our market or you have any other real estate needs, don’t hesitate to reach out to me. I’d be glad to help you.
