Renting vs. Buying: Which is Right for Me?

By Alejandra Zamora 

Whether it’s a home or a condo, renting and buying are the two options available to those looking to settle down, no matter the destination. So many factors go into deciding which route is right for you, including market conditions, household size, financial situation, length of stay, and more. In South Florida, countless apartments and homes are always available for sale or for rent; in many 2023 market predictions, for instance, inventory is said to be on the rise, so even more may be available to choose from in rising cities like Boca Raton, Delray Beach and Pompano Beach. A crucial first-step, however, is defining what type of property you want: Are you looking for a single-family home with plenty of land, and maybe even a water-view? What about a townhouse? Or, perhaps you want a condo in a building with lots of amenities and in a walkable area? Once you’ve made this distinction, determining whether to rent or buy is next. In this blog post, we’re outlining all the reasons to consider buying or renting based on every circumstance you can think of. 

Purchasing your own home

Whether it’s the quiet home on the cul-de-sac or that waterfront mansion you’ve been eyeing, buying your own home is a big step that requires lots of planning, saving, and searching. For most, it’s the largest purchase most people will make in their lifetime. But, the result is a home that’s all your own-- no landlords, your rules, full potential for customization, and so on. What’s important to consider, however, is that purchasing a home does require a large upfront cost; down payments can range anywhere from 3%-20% of the purchase price, and closing costs, property tax, insurance, and other little costs can quickly add up, too. The bright side is that a variety of financing options exist, and, in most cases, a mortgage can be less expensive than paying rent-- not to mention you’re paying off your own mortgage and not someone else’s. You’re also building up your credit and equity, as the payment goes towards principal, and mortgage interest can be written off on your taxes. Buying a home is for those who understand the larger costs associated with the purchase, but who also want a permanent residence they can personalize. 

Renting your own home

For those looking for a more temporary, less involved option, renting a home, condo, or townhouse could be the way to go; it’s essentially a “try before you buy” option to see what you like before you make an even larger purchase decision. When you rent, your monthly costs are more limited than buying a home, especially when the property you choose includes things like utilities, amenities, water, parking, and more in the rent. This means that less of a down payment upfront is required. Intense upkeep of your property usually isn’t required, however-- which can be a huge stress reliever-- because ownership still belongs to the landlord, but you may have to wait longer than you’d like for any repairs to be made. While this is a perk of having a landlord, there are other downsides to consider when you don’t own your home. For instance, your landlord has the power to sell the property or increase rent prices at the end of the lease term, and you have less opportunity to remodel or customize your property. If you want the option to relocate easily and are able to afford less at the moment, renting your property may be the best option for you. 

So, which option is right for you? Hopefully the breakdown of things to consider above made the choice a little more clear, but whatever your option is, contact our experienced members of The West Team to find your perfect rental or forever property.