Weighing the Benefits of Buying a House Compared to Renting in the Kansas City Metro
Most Americans are familiar with the concepts of buying and renting property. They both provide a place to live for a specific amount of money. In fact, sometimes the amount to rent can be as much as a mortgage.
For those who are selling their home, you’re probably already considering your options for your next residence. If you find yourself weighing the benefits of buying a house versus renting, there are pros and cons of each. In this blog, we will examine both sides of the debate so that you can make an informed decision.
Afterwards, we will provide some information on how to approach the Kansas City real estate market from a seller’s perspective. You have more options than you may realize.
The Drawbacks and Benefits of Buying a House
Buying a house means that you either paid a cash lump sum for a property or you secured a home loan that requires you to make monthly payments. Either way, the property is in your name. To kick off our renting versus buying comparison, let’s examine the pros and cons of owning property.
Pros of Home Ownership:
- Residents gain equity in the home with each mortgage payment.
- Owning a home provides a sense of stability and permanence.
- Residents have control over their living space and can make changes without seeking approval.
- Property values generally go up over time.
- Homeowners are eligible for certain tax deductions, such as mortgage interest and property taxes.
Cons of Home Ownership:
- Purchasing property usually means paying high upfront costs. According to recent statistics shared by Bankrate, the median down payment on a home is approximately $35,000.
- Homeowners are responsible for all maintenance and repairs. This can result in expensive issues that require an immediate fix.
- If the market makes a sudden downturn, your Kansas City real estate may decrease in value.
- Owning a home ties you to a specific location, which can make moving time-consuming, expensive, and difficult to do.
The Benefits of Renting Versus the Drawbacks
Renting property means that you have entered a contract with a landlord or property management group to live as a tenant for a specified time and price. Most people rent apartments; however, houses, duplexes, and townhomes can also be used as rental property.
Pros of Renting:
- The initial costs are much lower for renters versus homeowners.
- Renting is generally more affordable than a mortgage and may include things like utilities and trash.
- Renters have much more flexibility in terms of moving. They can either move once their lease is up or pay an early termination fee to break their lease.
- One of the biggest benefits of renting is that the landlord is responsible for fixing anything that has gone wrong, including plumbing, major appliances, electrical issues, and more. They also perform maintenance duties, such as changing air filters, spraying for bugs, and landscaping.
- Renting typically comes with amenities like gym access, swimming pool, outdoor grills, dry cleaning service, covered parking, and more.
Cons of Renting:
- Renters never gain equity, no matter how many payments they make.
- Landlords can increase the rent at the end of the contract, which can put tenants in a difficult financial situation or force them to move.
- Tenants have minimal control of their living space. Most rental agreements stipulate that tenants cannot make modifications such as painting the walls or installing carpet. Additionally, some apartment complexes have rules that prohibit grills, smokers, and lighting on deck areas.
- Some rental properties don’t allow pets, or they may restrict certain pets by breed or weight.
- There are no tax benefits to renting.
- Renters typically share a wall with adjacent units, which can be bad news if noisy neighbors move in.
- If the landlord or property manager is unresponsive or too busy, there’s little the renter can do about it.
How to Decide on Renting vs Buying
As you can see, the benefits of renting are counterbalanced by numerous drawbacks. The same can be said for buying a house. Ultimately, you need to decide what’s most important to you. For example, some folks do not want the responsibility of keeping up with yard work, repairs, and maintenance. In that case, renting is probably the best situation for them.
On the other hand, some people view their homes as an asset they’ll eventually sell once they decide to downsize, move out of state, or relocate to a retirement community. One of the biggest benefits of buying a house is knowing you can eventually sell it at a profit.
Planning to Sell Your Kansas City Real Estate? Blue Clover Has Options
If you are planning to sell your home, you may believe that contacting a real estate agent to list your home is your only choice. However, when you work with Blue Clover Investments, we give sellers what their local real estate agent won’t: options.
Our process is quick and easy:
- Contact Blue Clover Investments and provide us with a little information about the home.
- We will collect some information about you, including your goals and preferred timeline for the sale.
- Last, we will provide you with multiple options for selling your home, including a quick close cash option.
The call takes only a few minutes and is completely free. Worst-case scenario: you learn a couple things about the Kansas City real estate market that agents typically don’t share with clients.
Call Blue Clover Investments today at (913) 237-5959 to speak with one of our real estate professionals. You can also email us using the contact form on our website.
