Pros and Cons of Renting vs. Buying a House

Right now, Kevin and I are looking to buy a house. We have lived in a rental for 5 years. We know that if we don't buy now, we won't buy a home until Kevin is done with medical school (another 6-8 years). Is it worth renting or would it be better to buy?

Pros of Renting vs Buying a House

1. You can do whatever you want with your house. FREEDOM!!!! 
2. Gain equity. That's a fancy word for the increased value of your home above your purchase price. In a housing market, as we've seen during COVID-19, places like Utah and Idaho have seen home values raise upwards of $100,000 in a single year!!! That means if you bought a home in December 2019 and sold that exact same house without doing anything to it in December 2020, you could have made $100,000 for doing almost nothing. 
3. Options of paying a 15 or 30-year mortgage. If you have the funds available, choosing a shorter-term mortgage can save you thousands and thousands of dollars! Or you can have a longer term to have more funds available for other ventures. It is all up to you!
4. Having property for kids to create memories. Having rented for several years at various locations, I think the response from one landlord summed up why renting is hard with kids. "I am ok with people having dogs in the apartment, but I don't want any kids in my apartments because they always trash the place." If you have your own house, no one can tell you what you can and can't do!
5. Not just giving money to someone that will never benefit you. Aside from interest, every dollar you put into your house can come back in the form of equity. 
6. You can call it your own. Ahh, isn't that such a wonderful thing? To know that every day, you can come back to your own little piece of dirt and stacked logs? haha ok maybe a little more cheeky than it needs to be, but you get it ;)
7. Someone isn't checking in on you monthly or weekly. It is your choice of how you treat your house.
8. Most times mortgage, payments are a lot cheaper than renting per square foot. This comes down to the simple fact of making a profit. As a homeowner renting out your property, you are still liable to pay for mortgage payments, insurance, and taxes for the property. Of course, as a landlord, you are going to charge more to the renter. As long as you want to make a profit.

Cons of Renting vs. Buying a House

1. You have to take care of things when they break if you own the house. Well, shoot... Where's the number to that handyman again??? ...And what was his name?
2. Down payments are overwhelming because you want rainy day money too. If you're like us, paying for anything that costs more than $200 can give you a heart attack! Now imagine putting down upwards of $20,000 to $100,000 in a single purchase!! 
3. If you need to move, it may be hard to sell your house. Some people compare mortgages to a chain and ball around your ankle... I'll leave that up to you.
4. It can cost a lot of money to renovate and update your home. You know those country living magazines your mom always got? They're starting to look quite enticing now that you have a house, but updates to your home don't come cheap! 
5. You could lose value on your home. Hey, you didn't say I could lose money too!!! >:(
6. Keeping up with the Jones. Nuff said. 

"Our goal is to help the world make decisions with a list of Pros and Cons. We invite all to add to our lists to help others make the most educated decision possible. We are all in this world together to help each other and learn from what others have learned from their lives journey." - Pros and Cons Team

Written by: Sarah