Should You Rent or Buy a Home?
Owning a home is a dream not only for Americans, but also many Philadelphians. When you buy a place of your own, you'll have the opportunity to put down roots and build up equity in a place that's uniquely yours—and it will likely be one of the biggest investments you ever make.
However, buying a home isn't always the right decision for everyone. And believe it or not, renting can come with quite a few perks you may not have considered. If you're on the fence about purchasing or renting your home, PRDC Properties would love to guide you through the process. We don't just build new construction—we also maintain a portfolio of spectacular rentals all across Philly!
Ready to get started? Here's what you need to know about renting and buying with PRDC.
The Pros and Cons of Renting
Many people view renting as a stepping stone towards homeownership. While this may be true, there are some perks to staying in your rental, especially if you're looking for a more low-maintenance lifestyle that doesn't require a huge upfront investment.
Pro: Less maintenance
When you live in a rented home, condo, or apartment, your landlord will be the one handling exterior maintenance or repairs, which saves you money.
Pro: Freedom to move
If you aren't sure where you want to settle down, renting allows you to move easily and scope out different neighborhoods before making a big purchase.
Pro: Can be cheaper
Typically, monthly rent tends to be cheaper than a mortgage payment (when combined with utilities, unexpected repairs, and insurance). You also won't have to make a down payment!
Con: Lack of equity
All of your monthly rent goes in your landlord's pocket, which means you won't gain any equity for as long as you live in your home.
Con: No changes
Most rental homes come as-is, meaning you won't be able to make significant changes without prior approval from your landlord.
Con: More Rules
Many rentals come with additional rules—such as limits on pets or noise—that you have to follow. Breaking these rules could even result in unwanted fees.
The Pros and Cons of Buying
Buying a home doesn't just give you more freedom—it's also one of the best financial decisions you can make. If you can afford the cost of homeownership and are willing to take on additional maintenance responsibilities, it might be time to start looking at what's on the market.
Pro: Equity
If you plan on living in the same place for more than five years, buying a home allows you to build up equity over time. Ideally, you should be able to make a profit when you sell!
Pro: Tax benefits
Owning a home also comes with additional tax benefits. Believe it or not, the interest you pay on your monthly mortgage is actually tax-deductible.
Pro: Customization
Want to paint your walls, install new floors, or completely renovate your space? When you buy a home of your own, you can customize it as much as you want.
Con: More maintenance
You're the only one that's responsible for maintaining your home or making any repairs when something goes wrong—and those fixes can definitely add up over time.
Con: Upfront costs
In order to buy a house, you'll need to save up for a down payment. Most buyers put down 20% of a home's price—that would be around $60,000 for a $300k property.
Con: Difficult to move
Unless you have enough money to keep your home, you'll have to sell it if you decide to move. This can sometimes be a hassle, especially in a buyer's market!
Bottom Line: It's All Up to You!
As you decide whether you should rent or buy, it's crucial to consider both your personal and financial situations. If you have any questions, we'd be happy to chat with you about all of our available properties!
Ready to Get Started?
Whether you're looking to rent a modern condo in the heart of Philly or build a brand-new estate in the Pennsylvania countryside, you can trust PRDC to get the job done right. Contact us today for more information, or check out our current projects to see what we're up to. We look forward to connecting you with your perfect place!