Renting vs. Owning: The Pros & Cons

By Arkansas Next on Friday, April 5, 2024

Shutterstock

Owning a home seems like a far-away decision, but you could start paying bills when you turn 18 years old and leave home. Some colleges in Arkansas only offer on-campus housing for first-year students. After that, you’ve got to find a place to stay! Should you rent or should you buy? We've got you covered!

RENTING

PROS

CONS
When you rent, you don’t have to worry about handling maintenance repairs or lawn care! The property owner takes care of these responsibilities and costs for you.
You are often tied to a lease agreement time frame when you rent. Whether this is six months or a year, you must pay money or face not getting a deposit back if you break this agreement.
You can have time to build your credit and keep saving! Taking out a mortgage for purchasing a home requires having a credit check. The better the score, the better the offer! So start building your credit now.
There is no financial relief to renting. When you own a home, you can pay off the mortgage. When renting, you never pay off your rent.
You don’t have to pay a several thousand-dollar down payment. When renting, you may have to pay a deposit to secure the rental, but that could be, at most, $500. If you take care of your apartment and don’t cause significant damage, you will get your deposit back when your lease expires.
The landlord could decide to up the price of the apartment or home you are renting. If this is the case, you have no choice in the matter. You only have two options: Pay the higher rent or move out.
You don’t have to worry about decreasing your property value! Apartments will always have an influx of interested renters. The housing market ebbs and flows from a seller's market to a buyer's market every few years.
There is less privacy when renting depending on where you live. If you live in an apartment complex, the walls could be thin and you are more likely to run into neighbors on your way out the door.

OWNING

PROS

CONS
You can do whatever you want with it! If you want to paint the walls pink and tear an annoying wall down, you can. When renting, you have to abide by the style of the property. Every time you pay your mortgage, you set aside money the bank will pay you back when you sell your home.
You have to pay property taxes and are required to get homeowner’s insurance. There are many bills you have to pay when owning a home, so it’s a bigger financial investment that shouldn’t be taken lightly.
You have more privacy! You don’t have to worry about being too noisy, stomping on the ground and annoying downstairs neighbors or finding parking.
The cost of living is higher. Depending on where you live and how many bedrooms you have, your mortgage could cost anywhere from $1,000 to $2,000 a month.
You can settle down. You are not tied to your house forever, and you can choose to sell whenever you want. But you also have the chance to plant roots in the community you are settling in and build long-lasting relationships.
Maintenance can be expensive and not always covered by insurance. Whether a natural disaster occurs that leaves your home uninhabitable until your insurance claim can let you know the cost or your AC goes out during a heat wave – calling the right professionals and covering the costs is up to you!
Your house can acquire property appreciation. The longer you live in your home, the more the property value will increase while you are there. Whether you live in a walkable neighborhood or a desirable area of town, appreciation can occur and you could make more money off of your house.
HOA (Homeowners Association) fees are required. The HOA is responsible for overseeing residential communities. They have their own set of rules for noise levels, speed and home appearances. These groups can be difficult to deal with!

Recent Articles