Renting vs. Owning a Home: What's the Difference?

With the median age of first-time homebuyers at an all-time high of 33, it’s clear that many people rent for upwards of a decade before purchasing a house. While higher property prices and mounting student debt factor into this trend, many young renters underestimate their ability to qualify for a home and therefore rent for longer than they want or need to. 

If you’d like to leave renting behind but aren’t sure if you’re ready for the next step, consider the following “pros” of buying:

Build your wealth. When you make consistent mortgage payments, you build your home equity, which can be borrowed against for major life events down the line. Since rental payments go to your landlord, you are building their equity instead. 

Make your own rules. You decide what color you want to paint the walls, how you’d like to renovate, and how many pets you get to have. While homeowners are responsible for maintenance costs, this also comes with the freedom to personalize your space.

Have a set monthly payment. Interest rates on a mortgage are locked, so you won’t have to worry about the surprise increases that renters often face.

Find your community. Owning a home allows you to put down your roots in a new neighborhood, which can lead to a more permanent sense of stability and belonging.

Plan ahead. When you know you’ll be somewhere for a long time, you can start thinking about long-term goals without worrying about where you’ll be a few years down the line. 

Renting might still make sense for you for several reasons, like if you’re still working on your credit or don’t know where you want to settle down. If you think you might be ready to buy (or would like to start planning for a home purchase in the near future) reach out to your local NOVA Loan Officer today!