Renting vs Buying in Little Rock: Pros & Cons
The other day, I was contacted by a young married couple who oddly enough, currently live in the same apartment complex that I did before becoming a homeowner myself. They explained to me that now that they are married, they are interested in learning more about homeownership and how to get started!
There are many reasons why I believe people make the transition from renting to owning. With that being said, there are still some situations where renting may make more sense. So let’s get into it – Renting vs. Buying: Pros and Cons of Each.
The Pros of Renting vs The Pros of Buying
- No Maintenance – Clogged shower? Just file a maintenance request!
- No Property Tax – You may not be paying your own, but you might be paying the landlord’s.
- Easy to Move On – Hopefully you live on the first floor. I always lived on the third…
- Make it Yours – No more command strips for you! Change the paint and buy yourself a power drill.
- No Payment Hikes – Consistency for budgeting, yes, please!
- Build Equity – In a way, paying your mortgage is kind of like a forced savings account.
Some Real Estate Agents will tell you that buying always makes the most sense. But I disagree. There are some situations when renting may be a better option. If you know that you will be leaving Little Rock in a year or less, renting a house or apartment may be a better option for you. If your credit score is low and you need to work on your debt to income ratio, renting may be a good option until home ownership is feasible. Other than the situations mentioned above, usually buying a home makes the most financial sense.
The Cons of Renting vs The Cons of Buying
- Increasing Rents – Every year you live there, you get that lovely letter on your door saying it’s time to renew your lease and oh, by the way, your rent is going up.
- Lease Deadline – Will you have a place to live next year? Who knows…your building could get sold.
- No Equity – Consider how much your monthly rent is. Now think about how much that is in a year. Yeah, you aren’t getting that money back.
- Possible Money Down – You may need a downpayment but in many cases, this can be as little as 3%.
- Cost of Selling – There will always be costs, but when the value of your home is appreciating and you are paying less monthly than you were in rent, if that would really matter is up to you.
- Maintenance – When that shower drain backs up it is going to be on you, my friend. Time to watch a YouTube video or call a handyman.
Hi There! My name is Nicole Nark and I am a Real Estate Agent in Central Arkansas. I have personally wrote and researched the topics found in this blog so that I can provide quality and up-to-date content for you. Please share this article and leave me a comment if there is a topic you wish to learn more about!