(We’re Buying Property 215 & in this blog post we compare renting a home Vs buying a house in Philadelphia, we’re going to break down the benefits and negatives of being a homeowner along with our opinion, our experience when we buy houses, & possible advice)
At least once in every individual’s life span, they are faced with the predicament of either rent or purchase a home. Deciding which choice to make out of the two options may seem overwhelming especially with no prior knowledge of real estate. There are many pros and cons to each option, renting a home or becoming a homeowner. Every individual has different circumstances, so what may apply to you might not apply to others.
The main aspect that appeals most to renters is the fact that you’re only responsible for the rent. As a renter, you wouldn’t be faced with the responsibilities of paying a mortgage, property tax, school tax, upkeep, and repairs. The renter’s only focus is the monthly rent and the utilities in most cases. Over time maintenance costs tend to pile up even with a new house, such as replacing the roof roughly every 20-30 years, on occasion, you’ll need to hire a plumber or contractor to keep up with the minor repairs. Another benefit of renting is the flexibility to relocate or downsize once your lease expires. Most landlords require a year lease to begin, after that first year some landlords allow for a month-to-month lease, so this allows for little strings to be attached long term. Another benefit to renting property compared to being a homeowner is the price of insurance. The average insurance policy for a homeowner costs $1,249 per year while to be covered as a renter can cost as little as $179 yearly! But there are also negative aspects to renting a home. As a renter, you have no control of sudden decisions made by the landlord such as a rent increase & the homeowner selling the property! Most importantly you cannot build equity if you’re renting a property. It will be your home, but it won’t be your asset. The majority of the time the value of properties increases so there’s constant growth regarding the equity!
There’re many beneficial aspects that come with being a property owner. When you own the property, you live in, it gives you the freedom to live by your own rules and standards. It also allows you to make any desired changes or updates. There are financial benefits in owning a house such as tax benefits “you can deduct your mortgage interest payments” & you can sublease part of your property renting it out to earn monthly profits. While owning a property you would be responsible for upkeep, repairs, taxes, and the possibility of an increase in property tax.
Buying a house in Philadelphia or any other real estate market should be a well-planned process. You should never make the decision to purchase property without doing some research. Some things to investigate would be the overall crime rate within the area, the rating of the school district, quality of stores “grocery stores, restaurants, shopping stores, etc.”, public transportation, and neighborhood development projects.
If you begin the thought process of purchasing property, ensure it’s the correct decision for your household and realize the commitment that comes with owning property. Owning property is not for everyone so weigh out the pros and cons prior to purchasing a property. If the time comes; besides doing research, you will want to get preapproved & find the right agent to assist you with the process. Personally, we recommend purchasing the property. Over the course of 30 years, you would pay much more to rent than to own. Owning property allows for consistent growth in assets, possible early retirement, and generational wealth!
(We’re Buying Property 215, a family-owned real estate company! We buy houses in any condition and situation! Feel free to use our blog as a source when buying a house in Philadelphia or when considering becoming a homeowner.)