Should I rent or buy?

This piece is sponsored by The First National Bank in Sioux Falls.

Buying a home is a big deal, so you might be wondering: “Should I rent or buy?”

Ultimately, you need to make the decision based on what’s best for you and your situation — not any outside pressure you feel to do one or the other.

Here’s what to consider when weighing your decision:

Renting

Unlike homeownership, renting allows you to feel less tied down, whether it’s location or simply having to mow the lawn every week.

Consider these benefits to determine if renting is right for you.

• More flexibility: There’s less commitment when you rent, plus the ability to relocate easier because you won’t need to worry about selling your home.
• No property taxes: Homeowners must pay property taxes, but that’s not the case when you’re a renter.
• Less maintenance: Most landlords handle maintenance work and costs, meaning you won’t have to pay a repair guy when your furnace goes out or your toilet breaks.
• No snow removal or lawn care: If you find a landlord that takes care of snow removal and mowing the lawn, then you can feel good knowing that you get that free time back.

Buying

Homeownership also offers a lot of freedom, although it’s different from the freedom that comes with renting.

If you want to live in a space that’s all your own, buying might be the way to go. Consider these benefits:

• Building equity: When you buy a home, your monthly mortgage payments go toward something you own.
• Tax savings: You may deduct mortgage interest payments and property taxes from your federal income taxes. (This may not apply to you or your situation; please contact a tax professional.)
• Customization: You can make your house a home by painting, decorating and remodeling. Go ahead and knock down that wall.
• More privacy: Whether it’s from noisy neighbors in an apartment building or even your landlord, you can ensure a more private lifestyle in a home that’s all your own.

Should I rent or buy?

If you’re still weighing the pros and cons of renting versus buying, try exploring the decision further with this Rent or Buy? calculator.

No matter what you decide, First National Bank will be there for you. Connect with a member of the mortgage team when you’re ready to start a conversation!