Should you rent your apartment, condo, townhome, or single-family home? Or should you buy it? Depending on who you are talking to, the time of year, and the state of the real estate market, you might get very different answers.
In fact, for the last decade, people have been arguing about whether or not renting or buying is the “smartest move right now,” and finally people are starting to realize that the argument is starting to be like a truck that is spinning its tires — going nowhere.
As a community of apartments in West Chester, Ohio, we obviously vouch for the rental market. After all, our community is dependant on people needing rental properties to live in. That being said, we won’t go out of our way to say that renting is smarter than buying real estate right now — or ever, for that matter — because rental properties and privately purchased properties will always be in demand.
So join us in today’s blog post as we discuss why renting versus buying debate is truly pointless.
Getting to Know The Basics: The Basic Argument For Each
If you have ever argued with someone whether or not renting is better than buying or vice versa, we would be willing to bet that both sides of the argument came out of the gates swinging — with plenty of supporting points in favor of their opinion. Below, we have listed some of the more common arguments in favor of both renting and buying.
Common Arguments For Buying
- When you pay off your home it is 100% yours. Expenses are a thing of the past.
- If the home appreciates favorably over time, you can end up breaking even on the mortgage, taxes, and maintenance costs that you had to put into it.
- Taxes can be more favorable to homeowners.
- “It is a buyer’s market right now!”
Common Arguments For Renting:
- Owning a house is similar to a long term rental if you don’t plan on living there forever.
- Renting allows you the freedom to move on a whim.
- Buying property has hidden costs.
- Rentals don’t require you to pay for repairs or maintenance that you would have to as a homeowner.
The Real Reason This Argument Is Pointless: YOU
Sure, it might seem a little insensitive to say that you are the reason that the renting versus buying argument is pointless, but it’s true. But not because you are wrong or that the side you view is invalid.
The real catalyst in determining whether or not renting or buying real estate is the proper thing to do has nothing to do with the long term value of wither decision. Instead, it solely relies on you and where you are at in your life. Sure, the housing market might be a buyer’s market. But if you are an 18-year-old college student in Cincinnati, does that matter to you?
There are a handful of things that might determine whether or not renting or buying is the best decision. Things like:
- How long you plan on living in the area: While plenty of people purchase real estate with the intent to flip it and move shortly after, generally speaking, the longer that you plan on living in a home, the better the investment is. This is because the investment is spread out over a longer period of time. If you plan on living in an area for the foreseeable future, buying real estate might be a great idea. If you plan on leaving in the next few years, however, you might want to consider renting, as there is less financial risk involved than if you were to buy a home with the intent of reselling it a short time later.
- The opportunity cost of your investment: Buying a home is a huge investment, and when you make a large investment, it is important to consider the long-term return of that investment. Would the money that you spend investing in real estate be more or less than the money you might make investing that same money in stocks or a high-interest savings account?
- The cost of living in your area: Cost of living is one of the most important factors to consider when looking at rental and purchasing options — and yes, it will vary from person to person and from location to location. If you live in an expensive area, it might be wise to rent. If you live in an area that is affordable but is projected to become expensive in the future (and if you plan on staying in the area long-term), it might be a smart investment to purchase real estate.
The Bottom Line: Sometimes Renting Is Better — Sometimes Buying Is Better
If you get caught up in an argument about whether or not renting or buying property is a smarter decision, be sure to take it with a grain of salt. Sure, in Cincinnati-metro area it might be leaps and bound in favor of renting, and if you live in a rural Ohio town it might be skewed in favor of purchasing real estate — but in suburban places like West Chester, the determining factor is you and your future plans.
So if buying real estate is in your best interest, we wish you luck. But if you think renting is a better personal decision for you, we urge you to come to take a tour of our apartments in West Chester, Ohio today. With world-class amenities, a variety of floor plan options, and a location that is second-to-none, The Lakes at West Chester Village is the premier source of apartments for rent in West Chester, Ohio.
So what are you waiting for? Come visit us or apply to become a resident today!