Renting vs. Owning

Written by Leslie Sprouse, Buyer’s and Listing Agent 

Are you currently renting and desire to own a home someday, yet hesitant due to the financial commitment? Many individuals face the decision between renting and owning a property at some point in life. While both options have their advantages and disadvantages, it is important to carefully consider goals and circumstances when making the decision. 

It goes without saying that mortgage rates and home prices are on the rise. One benefit to owning a home when property values are increasing is the potential for appreciation. Additionally, it can’t be ignored that while mortgage rates and home prices are increasing, rent is increasing as well. When renting, you are building someone else's wealth and portfolio. When you own a home, your mortgage payment is a savings that you are paying into every month. Not only are you building equity in your home, but you are also increasing your net worth, your wealth, and your portfolio, not the landlord’s.

When buying a home, there are upfront costs such as down payments, closing costs, and maintenance expenses, whereas renting offers lower initial costs. However, home ownership can bring tax benefits as homeowners may be eligible for tax deductions on mortgage interest and property taxes, potentially reducing their overall tax burden. Another benefit of owning a home is locking in a mortgage payment that will not go up for at least 15 or 30 years. On the other hand, rent payments can increase hundreds of dollars at a time, beyond your control. 

ATTOM Data states, "Owning a home is still more affordable than renting in the majority of the United States.” The Upstate of South Carolina is no exception. After all, homeownership is still the American Dream in South Carolina, and the mortgage industry has rallied to create programs to help make homes more affordable. 

The decision of renting vs. owning ultimately depends on one’s personal and financial situation as home ownership is a big decision. In fact, it's more than likely the biggest financial decision you will ever make, which is why it is crucial to work with a Realtor and mortgage professional. Having professionals in your corner can help you prepare for market changes and to be ready to act when you find the right property. 

If you are thinking of making your dream of home ownership a reality, we are here to help guide you through the process! To get started, give us a call at (864) 583-1000.