Renting vs. Owning

By: Holly Grate

Ah the age old debate – to rent or to buy!? As a 40ish mother of 3 I have been a renter, owner, landlord and even at one time lived in a camper on a friends property. There are benefits found in each of these situations – except maybe for the camping excursion. 

When you as the consumer are making the decision about which road you should take as a renter or owner there are many things to consider.

So let’s say the decision has been made to rent a fabulous apartment near the subway station. What are the benefits?

Short term - One of the joys of being a renter is the flexibility it can offer. If you know the job you’ve just taken will only be a one year commitment renting would offer the most benefit. Trying to find the perfect place isn’t as big of a concern either. Don’t love it? Oh well it’s only a 12 month lease! 

Stress free (well...mostly!) - Considering your free time and cash flow is a biggie when deciding to rent or purchase. A huge benefit of renting is just that – you aren’t the owner. Roof is leaky and in need of repair? Call the landlord! The dishwasher has ceased to wash? Hello landlord! The time and money saved in home repairs is sometimes all its cracked up to be. 

Provides a good look at where you want to purchase - When my husband and I first moved to the DC area we had less than a clue about where we wanted to settle. We could have purchased a home at the get go but decided it wasn’t wise. We rented for a year in a neighborhood we thought we loved and were sure we would buy in. Oops!!! Nope. Like, BIG nope. Thankfully we were just renting and not committed for the long haul. Renting provided us the time we needed to find the perfect home and neighborhood for our family.

So you have found the perfect cape cod with a picket fence and a garden. How will this investment benefit you?

Less than rent - A very obvious benefit of owning your own home is the financial aspect. Owning is most often less expensive than renting. Each month you are paying down the principal and gaining equity in your home. All money in your pocket that adds up over the course of time!

Pride of ownership - Having a home to call your own brings the freedom to decorate and redecorate as often as your paycheck will allow. Don’t like that purple kitchen? Paint it yellow! The boxwood bushes in the front yard smell bad? Pull them out and put in rosebushes! Watching a home become something that is completely yours is a thing of pride and beauty.

Putting down roots - Moving to DC from West Michigan was a huge move for my family. When we found the home we loved, we knew it would be a long term decision. Our children have made life long friendships here. They have made memories on the tire swing, buried a precious dog, brought home a new puppy...countless joys and sorrows in the same cozy home. Friends, THAT is priceless!