Renting vs. Buying Pros and Cons | BOLT Insurance

renting vs buying pros and cons

If you are thinking of getting a house, there is one big question that every potential homeowner needs to decide: Rent or buy. You may not know all the renting vs. buying pros and cons, so take all of the following aspects into consideration. Everyone’s situation is different, so it is important that you make the decision that is right for you and not anyone else. Of course, regardless of what you choose, Bolt Insurance Agency can offer either renters insurance or homeowners insurance. Being insured is vital no matter which side you come down on.

What Lifestyle Do You Want?

One of the biggest considerations you should have when making this decision is what kind of lifestyle you are pursuing. In many ways, your age will play into this as well. If you are still young, you may not want to be tied down by a house. Or, if you are ready to settle down, renting may be unappealing to you. You may have the desire not to be tied down or to settle regardless of your age, of course, but the fact remains that owning vs. renting makes a big difference in how you can live your life. It is more difficult to go on trips or move if you own a house.

Can You Afford To Buy?

There is more to consider in terms of financing than just rent vs. mortgage. In many cases, you may actually pay less on a mortgage than on you would for monthly rent, but there are many other expenses associated with owning a home that are simple not applicable for renters. If something breaks, you are responsible for repairing it. You can either do the work yourself or pay someone to do it, but either way, it will cost you money. There is also property tax, fees, and insurance to take into consideration. It is also important that you remember that purchasing a home requires a sizable down payment that you must have up front. Additionally, you will likely need good credit in order to make a purchase as big as a home. You may need to work on improving your credit score for a few years before you buy.

Thinking About it the Right Way

Not only is it important that you think of the different financial requirements for renting and owning correctly, but there are many other aspects that are hard to understand early on. It is stressful to purchase a home, as well as maintain it. It may seem like a wonderful opportunity, and it is, but it also does come with some challenges. If you think you are ready to tackle those stresses and challenges, then you should not be afraid to purchase a house.

Are You Looking for an Investment?

Many people treat purchasing a home as an investment. It is a collection of wealth that can be liquidated years from now in order to retire. This is a great way to think about owning a home, but this aspect is changing slightly. The way homes are valued is changing and when it comes time to sell your home, you may find that it is not the reliable payoff you were expecting. There is always the chance that it will, but experts now recommend that this should not be the only reason you are purchasing a house. Additionally, it may be wise to consider other investments during your life to go alongside the investment of your home.

No matter which decision you make, be sure that you are insured. At Bolt Insurance Agency, we do everything we can to help our clients. Get a free quote today, whether it is for home or renters insurance.