Renting vs Buying a House: Pros & Cons

Are you trying to figure out if you should rent or buy a house? Watch this video to understand some pros & cons of each option and read below for more information. Advantages of Renting Your landlord is typically responsible for repairs and maintenance so you don’t have to pay out of pocket for these expenses. Landlords may pay for some or all of the monthly utilities (for example, they pay water and you pay for gas and electricity). Renting is usually considered to have more flexibility as you can move out whenever your lease is up. There is no large investment when renting besides the security deposit which you may even get back at the end of the lease. Disadvantages of Renting Because you don’t own the place, there may be restrictions from your landlord like no pets or no remodeling allowed. You are paying rent each month without receiving any equity or ownership of the property. If the landlord or owner decides to sell the building then you may need to move out quickly. If you sign a year lease and subleases are not available then you are stuck with the lease until the lease term is up. Advantages of Buying It can be a good long-term investment and each mortgage payment will gain you equity in your home. There are fewer restrictions when it comes to remodeling, pet ownership and other things of that nature. If you plan to be in one place for a long time, buying could be a good option because you can stay in your house for as long as you want—until you decide to sell, that is. In some cities, a mortgage payment may be cheaper than rent. Disadvantages of Buying You’ll usually need a down payment which can be a large lump sum of money in addition to paying closing costs and other costs associated with home buying. You’ll have to pay for all of the home improvement fixes yourself plus other dues such as HOA fees. If you want to move, you are responsible for the mortgage payments until you sell your house. For additional information on renting vs buying check out this article: https://www.sofi.com/learn/content/should-you-buy-or-rent-a-home-quiz/ About SoFi: A finance company that can help you get ahead. Get Your Money Right™ with SoFi. Connect with SoFi: Like SoFi on Facebook: https://www.facebook.com/SoFi/ Follow SoFi on Twitter: https://twitter.com/SoFi Follow SoFi on Instagram: https://www.instagram.com/SoFi/ Follow SoFi on LinkedIn: https://www.linkedin.com/company/SoFi/