There are many factors to consider when making the decision to rent or buy a home in Las Vegas. A lot of the decision to rent or buy is based on your current circumstances, age, future goals, location preference, and budget. Here are some of the pros and cons of each option:
Renting Pros:
Let’s start with the pros of leasing a rental house and explore a few of the most prevalent advantages.
Flexibility
You may have more flexibility in terms of where you live since you can move more easily if your job or lifestyle changes. Many young people right out of school choose to rent in a metropolitan area like Las Vegas, NV, more affectionately known as Sin City because their friends are there, they got their first real job in a high-rise, or they just aren’t sure where they want to live long-term. For these reasons, renting is often the more appealing option for new graduates.
Less Maintenance
You may be able to save time and money since you won’t have to pay for repairs or maintenance on the property. If you’re a novel home-buyer, a super busy person, elderly, or a single-parent, maintenance can seem like an overwhelming or tedious concept when searching for a place to live. When you rent, you have a landlord that takes care of repairs and maintenance.
Fewer Financial Ties
As a renter, you won’t have to deal with the hassle of selling the home if you need or want to move. There is a lot less financial pressure to renting rather than owning a home. You simply won’t have to worry as much about keeping, maintaining, or selling the property. You have less of a vested interest in the value of the place when you’re a renter, which can ease a lot of stress.
Renting Cons:
While the section above makes renting seem like the perfect, low-stress option, there are several cons to be aware of as well.
Less Control
You may have to deal with a less than ideal living situation if your landlord is unresponsive to repairs or maintenance issues. You can’t control the state of the property because you are not the owner. Therefore, you have to rely heavily on the integrity, timeliness, and quality of your landlord.
You’re Just a Visitor
You may not be able to fully personalize your living space since you’ll likely be renting an apartment or home that someone else owns. Sometimes people feel like they’re less grounded when they’re renting. They don’t have a stake in the land, or they don’t have roots growing. This can bother a lot of renters who want a place they can truly call their own.
No Equity
You’ll likely be paying someone else’s mortgage with your apartment rent instead of building equity in your own Las Vegas home. This is a huge deterrent for many potential renters. They feel like they’re throwing money at a wall because they are paying someone else’s mortgage, building equity for another person, and putting profits in someone else’s pocket. This can be really frustrating for someone who is trying to position themself to be financially stable.
Buying Pros:
Now that we’ve discussed many of the pros and cons of renting, let’s switch over to the buying side and start by highlighting some of the advantages. As an important note, it’s highly suggested that you speak with a realtor and a financial advisor before purchasing a home. There are a lot of intricacies about your lifestyle and financial situation to consider before committing to such a large purchase. If you’re in need of a reliable and experienced realtor, head on over to Blue Diamond Realty’s website to get linked with a professional.
Build Equity
You’ll build equity in your property as you make mortgage payments. Home equity is huge for providing a stable financial base for yourself, building credit, and giving you financial leverage to make bigger and better financial moves down the line. Building equity leads to building your personal financial wealth.
More Control
You’ll have more control over your living situation since you’ll own the property. You can do what you please with the home and the property. Granted, if you have an HOA you’ll have to abide by their rules and regulations for any changes you want to make. You also have more control over the area you live in. Let’s say, for example, you want to live long-term near some iconic place like Red Rock Canyon or Lake Mead. If you buy your home in that area, you don’t risk being evicted and having to move on to somewhere less comfortable or appealing to your lifestyle. If you prefer suburban areas, you can find a home to settle down in that is near shopping centers or nearby cities for easy access to necessities and amenities.
Pride of Ownership
You’ll have a sense of pride that comes with owning your own home. This is the American dream for many people, especially in a vibrant place like Las Vegas, NV, and there’s nothing like coming home to a place that you can truly call your own after a long day at work. When you rent homes for a long period of time, it seems that the freedom of a more nomadic lifestyle begins to lose its power over you to the stronger yearning to have something of your own that you can put your mark on.
Live Cheaper
Surprisingly, a monthly mortgage can be a lot less expensive than the average monthly rent, especially if you live in a condo or townhome division. If you belong to an HOA, many of your maintenance and utility costs will be lumped into a monthly fee which, when split between many other homeowners, can reduce the individual costs per person. Average rent, especially in and around many cities, is sky-high right now. Granted, so are home prices, but because of historically low-interest rates, monthly mortgage payments are manageable for most.
Buying Cons:
Homeownership is awesome, but let’s look at some of the potential detractions for some people.
Ultimate Responsibility
Besides having children, one of the greatest responsibilities and risks you’ll likely ever take on in your life is owning a home. There is a ton of responsibility that comes with owning a home, and there likely won’t be somebody there to bail you out if you fail. Foreclosures and not being able to keep up with your home are some of the toughest and most stressful experiences people go through. If the market turns sour, you may have difficulty selling your home or making your mortgage payments.
You’ll also be responsible for repairs and maintenance on the property, which can be costly. Buying a home is always somewhat of a gamble, so you need to make sure you have the proper means to deal with a few unexpected blows.
Less Flexibility
Buying a home can be scary, in some part, because it implies a sense of becoming static. So many people rent forever because they are afraid of or have no desire to “settle down” or “put down roots” in one singular place. Buying a home doesn’t mean you’re glued to it forever, but a static lifestyle is sometimes a turn-off for people.
Money Upfront
You may need a larger down payment than you would if you were renting. However, there are loan products, especially for first-time homebuyers, that don’t require a large down payment to purchase a house. If you want a conventional loan and a nice house in a nice neighborhood, that will cost you a pretty penny upfront, but a large downpayment is not always required.
Conclusion
Ultimately, the decision of whether to rent or buy a home depends on your individual circumstances. If you’re not sure which option is right for you, it’s a good idea to speak with a financial advisor or realtor, like the experienced professionals at Blue Diamond Realty, to get more information.
