So you are in the process of determining whether you should rent or buy a home. You should know the pros and cons of both options before making your decision and believe me, they both have pros and cons! First thing to look into when deciding to rent or buy should be the longevity of this move, do you plan to stay in the area for the short term or the long term? Are you someone who likes the ability to move around freely or are you someone who would like to plant roots and set a foundation?

As for the pros and cons for each, we’ll start with the rental side of things. I worked in property management for a luxury apartment complex in Napa for a little under 5 years. I could see the benefit to apartment living:

• The large draw was flexible lease terms. You have the flexibility if you are only in the area for a short amount of time to rent accordingly. You typically had the option of 3-12 months and everything in between.
• Amenities are another large draw to apartment living, you get amenities like pools, spas, fitness centers, and clubhouses to utilize
• Maintenance is an appealing reason for renters as well. I worked for a full service property management company which meant we had 2 full time maintenance technicians as well as after hours maintenance.

All of these luxuries come with a cost. At the end of the day, the property management company was hired to maintain the property and increase the property’s performance and income. This means rent increases. Typically it does not matter the length of your time in the apartment, when your lease comes to an end you’ll need to be prepared for a 3-9% increase letter approximately 30-45 days before your lease end date. 

When you rent, either a home or an apartment, you are putting your money to work for someone else's investment. You are building up someone else’s wealth instead of creating your own and investing in yourself and your future. You could also be paying more in rent than you could be on a mortgage payment.

Another downside to renting, you can’t make the apartment or house your home. You typically can’t paint your walls whatever color or design you want. Change out the flooring to hardwood or plank or even upgrade the appliances. Your restricted on what you can do on the inside and the outside of your home, as well as who or what you have living with you. Landlords can restrict pets and guests from staying with you.

Being a homeowner has its pros and cons as well. A downside to being a homeowner is maintenance. You are responsible for the maintenance on your home however if you know some great people in the real estate field, they may have some recommendations on plumbers, contractors or just a general handyman.

A benefit to owning your own home is the freedom to make it yours, paint the inside however you want, replace the flooring with the material you like, have a dog or a cat, you can even choose to rent out a room or two if you want! You have the freedom to do what you want with your home. You are also building your own wealth and your monthly payment is locked in for 15-30 years! Over time your equity can build up your net worth and can help you fuel your next home purchase.

A tool that will be beneficial in determining the potential overall cost is a Rent vs Buy Calculator. One of the best calculators I’ve been able to find is the one from The NY Times found here. This calculator will allow you to adjust certain criteria such as Purchase Price, Down-Payment, Potential Interest Rates, Monthly Rent, Renters Insurance, and more.

If you are curious about the possibility of homeownership, leave a comment below or call or email! Please contact a licensed realtor in your area, whom you trust, for recommendations on good lenders that know the local market and can get you pre-qualified so you can find your new home. When you are pre-qualified it helps you to know the price point to search in!

We hope this post was helpful and hope you come back soon for more information on the Napa Housing Market! Happy House Hunting!