Las Vegas is a charismatic city with diverse neighborhoods and a vibrant town center. Along with getting to know the area, you will want to make sure that you find the right place to live to make the most of your experience. Both buying and renting in the city are great options. However, the right choice for you between the two ultimately depends on your lifestyle, personal preferences, and of course, finances.
When you are deciding whether to rent or buy a home, you’ll need to consider some factors regardless of which living situation that you choose. That includes thinking about proximity to work and access to your favorite amenities, such as nearby shopping centers, restaurants, parks, and nightlife, especially if you are new to Las Vegas. Additionally, every neighborhood in Las Vegas has its own personality. Do you want to be in a busy and more social part of the city close to the heart of all the action, or do you prefer a quieter setting in the outlying suburbs? If you are not quite sure what you want out of your living experience, renting can be a great way to try out one or more locations in the city before settling on one.
Why Rent in Las Vegas?
Ultimately, deciding whether to buy a home in Las Vegas or rent instead is up to you. Finances naturally play a role in influencing your decision, but there are other factors to consider.
- Lower cost of living
- Savings on tax and insurance
- Avoid housing market fluctuations
If you know that you want to give Las Vegas a try, but you’re not yet sure where exactly you want to live once you’re there, you may enjoy the flexibility that comes with renting than buying a home. Renting gives you more freedom to try out different locations within the city and even Las Vegas itself. You also have more flexibility with the shorter-term time frames of renting compared to buying. If you move to Las Vegas for a new job, you may want to rent initially if there are any uncertainties with your work situation.
Renting is a popular option for people who can’t fully afford to buy a home. While you may be responsible for fees such as internet, utilities, and trash or recycling fees, you won’t incur other expenses as a renter that come with homeownership, such as paying for new appliances and home repairs. If you’re looking to save money or don’t have the funds for a home, renting is a good choice.
Another expense that homeowners must pay but renters do not is property taxes. On average, homeowners in the United States spend about $2,700 annually in property taxes, with some state and municipality variation. Insurance is another expense that you don’t have to worry about if you’re a renter. You may need to get renter’s insurance when you rent a new place, which costs on average about $187 per year. Homeowner’s insurance, in contrast, costs about $1,228 per year.
Another advantage of renting is that you avoid the fluctuations that come with the housing market. Changing market conditions can make it more challenging to sell a home when the time comes, and it can affect other finances such as property taxes and interest rates if you buy a home with assistance from mortgage brokers Las Vegas. Those changes do not apply to renters.
Experts add that as a general rule of thumb, renting is generally recommended if you plan to stay less than five years.
Should I Buy a Home in Las Vegas?
While renting a place might make sense based on your lifestyle preferences and your budget, you might find that it makes more sense to buy a home instead. Considering these additional factors will give you a better idea of whether you’re better off buying a house rather than renting when you move to Las Vegas.
- Predictable payments
- Freedom to customize
Investing in a home brings some financial advantages that are not available with renting. You can build equity in a home, for starters, which is the amount of home you own compared to the amount you owe on your mortgages. Your equity builds in your home over time as the house gains value. You can also build equity in several ways, including getting a reverse mortgage, which a mortgage company Las Vegas can explain.
Other financial benefits come with homeownership as well. You can know your home payments in advance with certain types of mortgages, such as a fixed rate mortgage loan Las Vegas, making it easier to build home expenses into your overall budget. On the other hand, with renting, your rental rates may increase at the end of each lease term. Your credit score can also improve with homeownership if you pay your bills on time.
A final consideration for buying a home is the freedom to do what you want to the house. Homeowners don’t face restrictions such as pets, paint color, and other property changes that renters may incur. Once you get the keys to your new home, the choice is yours to design and decorate as you wish.
If you have questions about moving to Las Vegas or the advantages of renting compared to homeownership, contact an experienced loan officer Las Vegas for assistance.