Should You Buy A House?

Many of us have found ourselves in the position of paying monthly rent while dreaming of homeownership, an aspiration that seems increasingly unattainable due to the imbalanced equation of rising living costs and stagnant pay. The notion that owning a home is the quintessential "American Dream" perpetuates, despite the challenges people face.

My unique position adds depth to this narrative—I'm a homeowner of a two-family property in New Hampshire and concurrently a tenant in a single-family home in North Carolina. My journey began as a renter for fifteen years, navigating financial struggles even in what many considered simpler times.

In August 2019, an unexpected opportunity arose when our landlord expressed his intention to sell the two-family home we were renting. Despite lacking a substantial savings account, we faced the prospect of homeownership with a mix of excitement and panic. Fortunately, connecting with a remarkable real estate agent and mortgage broker facilitated the purchase without an upfront down payment, leveraging state incentives for first-time homebuyers.

The reality of homeownership hit hard post-purchase. The responsibility for every aspect of our home, times two, became apparent. From dual water heaters to multiple appliances, we realized that without a landlord to call, all issues fell squarely on our shoulders. Frankly put, homeownership is not a one-size-fits-all solution.

Fast forward to December 2023, a relocation to North Carolina led us to retain ownership of the two-family property in New Hampshire while becoming long-distance landlords. To add another layer, we transitioned back into the role of tenants, renting a single-family home as we explore long-term living arrangements.

This narrative encapsulates the evolving dynamics of housing—from renting to homeownership and back to renting. It underscores the multifaceted nature of these decisions and the importance of adapting housing choices to suit individual circumstances, goals, and lifestyles.

Whether renting or owning, the journey is a personal one, shaped by unique experiences and considerations. The quest for the perfect home continues, navigating the ever-changing landscape of housing with resilience and adaptability.

As somebody who is currently living the role of paying tenant AND homeowner, here are some pros and cons of renting versus home ownership: 

• RENTING PROS
• Anything beyond routine maintenance is typically the landlord's responsibility 
• Renters' insurance is much less expensive than homeowners insurance
• Renting provides flexibility with location
• Some landlords offer utilities that are included in the price of rent
• No property taxes
• Rent payments can be reported to the credit bureaus to help build credit
• Some landlords offer great amenities included in the price of rent
• Depending on the area, renting can actually be cheaper!
• As long as your rent price is reflected in a lease, you’re locked into the rent price for the term of the lease 
• You’re not responsible for the cost of repairs, maintenance, and landlord-provided appliance replacement
• Monthly budgeting is easier due to rent prices remaining steady during the term of your lease
• Lower up-front costs to move in

• RENTING CONS
• There is typically a hefty fee for breaking a lease
• Inability to truly personalize the space and do any renovations
• Annual rent increases
• Rent payments are not going toward building equity
• Finding a rental company that allows pets can be challenging and expensive
• You pay rent indefinitely, unlike a mortgage that can be eventually paid off
• Your living stability is reliant on what the landlord does (if they decide to sell, you may be forced to move, etc.) 
• If you’re renting in a multi-family building, you’ll have to tolerate the noise of those living around you

• HOME BUYING PROS
• The property and home belong to you! 
• Mortgage payments go toward building equity
• Got ten dogs? No problem! You can have however many pets you want 
• The space can be customized and renovated to your liking
• You’re not bound to the rules and constraints of a lease 
• Additional principle-only payments can be made to help shorten the term of your mortgage and help save money on interest rates
• Financial assistance is available for first-time homebuyers
• You can make a profit if you decide to sell in a good market

• HOME BUYING CONS
• If you break it, you’re likely the one responsible for the cost of repair/replacement
• All utilities are your responsibility
• Mortgage interest rates can vary, which means your monthly mortgage payment can vary, too
• The cost of the property maintenance falls on the homeowner - you!
• The process of purchasing and selling a home can be lengthy 
• Homeowner insurance and property taxes are the homeowner's responsibility
• Additional insurance may be required depending on the location of your home (think flood and natural disaster insurance) 
• If you’re living in a neighborhood that has an HOA, you’re paying an HOA fee, along with abiding by the HOA rules and regulations 
• Taxes can be complicated & expensive
• Property taxes vary from year to year
• Homeownership is a long-term commitment and doesn’t offer as much flexibility in location

In conclusion, the journey from renting to homeownership and back to being a tenant has provided valuable insights into the pros and cons of each living arrangement. The dream of homeownership often comes with financial challenges, and while it brings a sense of pride and stability, it's not without its hurdles.

On the other hand, renting offers flexibility, reduced responsibilities, and potential cost savings, making it a viable option for those needing more time to be ready for the long-term commitment of homeownership. The decision between renting and buying depends on individual preferences, financial situations, and lifestyle choices.

As someone currently navigating the roles of a tenant and a homeowner, I've experienced the benefits and challenges of both scenarios. Whether renting or owning, it's crucial to weigh the factors that matter most to you—financial stability, personalization, responsibilities, and flexibility.

Ultimately, there is no one-size-fits-all answer to the renting versus homeownership debate. It's about finding the right balance that aligns with your goals, lifestyle, and financial capacity. Both paths have their merits; the key is choosing the one that suits your current needs and aspirations.

As the housing landscape continues to evolve, staying informed and making decisions based on your unique circumstances will guide you toward a housing situation that feels like home. Whether it's the freedom of renting or the permanence of homeownership, the journey is yours to navigate.

Happy home, wherever it may be!