Buying vs Renting: Is Renting Really a Waste of Money?

When it comes to the age-old argument of buying versus renting, it’s clear that neither is right or wrong. Both civilian and military families find themselves asking similar questions before making such an important decision. Some ask, “Why buy when you can rent?” Or, “Is renting a waste of money?” There’s a lot of gray that comes with both homeownership and rental property. Pros and cons exist for each option, and which one is better depends upon a specific family’s (or person’s) situation. Consider these benefits when you’re deciding which is best for you.

Why Buy?

Financial experts will tell you that investing in a home is not only a measure of financial success, but it’s a good long-term decision. Paying off your home means it’s yours — and nobody else’s. It belongs to you and becomes an asset in your portfolio, and if you’re lucky and the house appreciates more than you’ve paid in mortgage, interest, and taxes, then you may even earn a return. This may seem daunting — as taking care of a home may not be your top priority while on military assignment, for example — but it also may be the best option for your family if everything aligns financially.

However, it’s important to keep in mind one obvious barrier to purchasing a home: it’s much more permanent than renting. If you’re accustomed to moving frequently, then you may want to weigh your options for homeownership. Selling your home may add another layer of stress to an already hectic relocation. Don’t forget to factor in realtor fees, closing costs, and all the other odds and ends that come with selling a home, whether you’re in the service or not. If you’ll be in the area for fewer than five years, then you may not build enough equity to come out ahead after closing costs. Additionally, consider your location. If you’re in an area with high property costs and taxes, then it may be more financially sound for you to rent for the short period of time you’ll be in the area.

Why Rent?

There are some who believe that renting a home is simply throwing money out the window. In reality, it’s not going out the window — it’s providing you a place to live. With a rental property, you often don’t have to pay for repairs or maintenance, as landlords typically take care of those issues.

Renting also affords you more freedom. As a military family, you can take advantage of CORT’s Military Out Clause, which provides active duty military members and their families the ability to change quickly if their post is moved to a new base. No need to worry about your furniture rental contract, as CORT will work with you on the terms. Civilian families benefit from renting, too. It affords you flexibility and time to check out your area’s neighborhoods, school districts, and commuter routes, for example, before you decide where to lay down more permanent roots.

Whether you decide to buy or rent while on active duty, CORT Furniture Rental helps fill your space. Create a life beyond the barracks, and make your home exactly what you need.