If you’ve been looking to buy a home in Vermont, the question of renting or buying has most likely shown up at least once. We here at Vermont Mortgage Company get this question a lot, and we hope this blog will help! Many will speak for either side, for each has their benefits and drawbacks. But there isn’t one right answer, only what is best for you at the time.

The best thing one can do is research. Lots of it. Otherwise you could end up making a decision you aren’t happy with, or worse, one that causes even greater hardship like losing your home to the bank. Your first priority is to make sure your finances are in line so you know what you can and can’t do. This may seem like common sense, but really crunching the numbers will ensure you don’t run into nasty surprises down the road. Then, look at the pros and cons for either buying or renting. Here’s a short list for each, to help you out:


Reasons to buy a home in Vermont:
-Once you paid off the home, it’s yours
-If your house appreciates you could break even or a return
-Tax credits help offset cost
-If you plan on living somewhere for a long amount of time, it could be cheaper than renting
-You can change, customize, and improve your home however you’d like

Reasons to not buy a home in Vermont:
-Myths about house appreciation aren’t true, and houses mostly aren’t investments
-Having to pay for all maintenance and improvements
-Home is affected by housing market fluctuations


Reasons for renting a home in Vermont:
-Freedom and flexibility to move
-Don’t have to pay for house maintenance, repairs, or other issues
-Cheaper than buying a home if you don’t plan to live there long
-Protection from declining house prices
-Could be cheaper in cities and more expensive areas

Reasons against renting a home in Vermont:
-Less stability in monthly costs
-Possibility of lease ending with little warning
-Limited to no ability to customize or improve house
-No opportunity to build equity, nor tax benefits
-Difficult for people with pets

So what does this mean? Both have pros and cons on either side of the spectrum. If you plan on settling down for good for a long while, buying a house will definitely be cheaper in the long run. A good rule of thumb should be that paying off a house should be 25% of your monthly earnings, so that you don’t become “house poor” – as in you buy a home and find it’s costing too much, so in the end you lose your home to the bank. On the other hand, if you’re going to rent a place, you will be subject to your landlords terms and lease amount, which will increase every year.

So the bottom line here is this: both options are smart, but sometimes one is smarter than the other. Make sure you crunch the numbers and know what you can and can’t do, and try to keep in mind the important factors like time and cost.

At Vermont Mortgage Company, we are your local experts in this field. If you have any questions or concerns about your next home, please drop in to our office or give us a call. We will help you through the process and make sure your experience will be as pleasant as your new home.

We are here for you at 802-863-2020.

Loan Calculator

Mortgage News

The Benefits of Having a Mortgage

Warm greetings from all of us here at the Vermont Mortgage Company! We know we talk a lot about mortgages and their different types, but what exactly are the benefits of a mortgage? Amazingly enough, it's more than just a way to pay for a house over a period. There...

10 Home Buying Myths

Many times, so many of us think things are common knowledge, but instead they are just a mere misrepresentation of the truth. Like when we were little and grandma would tell us that if you keep crossing your eyes like that they will get stuck. However, as we get old...

Mortgage Redo – What Does Refinancing a Mortgage Mean?

Greetings from all of us here at your local loan office! With the transition of the seasons finally upon us, it seems like an appropriate time to talk about something else that would be good transition for finances before the holiday season reaches near. Let’s dive...