Renting vs. Buying

Inflation sits at around 9% right now according to economists. Interest rates are rising, currently around 5-7% at most institutions in North Dakota. What does that all mean for renting vs. buying decisions? Here are some benefits of both options.

Renting

• No 5-10% down payment required
• Shorter term agreement (typically 12 months rather than 15 to 30 years)
• Can opt out at the end of the lease term with 2 full calendar month notice
• Maintenance provided and paid for by property management company
• No worrying about interest rates, taxes, specials, etc.
• Wide variety of rental options with Meridian with most build from 2012-2022
• See our availability here

Buying

• Earn equity in your home and build credit
• Monthly payment may be cheaper than renting (many contribution factors)
• Lock your interest rate in at today's value, with uncertainly looming
• Freedom to paint, mount items, redesign rooms, etc.

A word we have been hearing a lot lately is "uncertainty." In many ways, renting protects more against uncertainty than buying. Renting is a shorter term commitment, it is easier to get out of a lease than a mortgage, and it offers more flexibility. Renting also protects against unexpected maintenance costs like a furnace or water heater that goes out. That can cost several thousand dollars to a homeowner.

A concern we have been hearing a lot is regarding larger rent increases in the metro. In 2018-2020, it was pretty common to see little to no rent increase. In 2021-2022 we have seen much larger rent increases to cover the increases in staffing costs, subcontract costs, property taxes and inflation-related costs in general. As an owner, you aren't 100% protected against your mortgage/escrow payments going up. Property taxes and special assessments can increase your monthly mortgage/escrow sometimes more than a rent increase.

At the end of the day, renting a home or owning a home can both be a great option. We encourage you to reach out to our experienced leasing team to discuss if renting makes sense for you. You can reach the team at leasing@mpmfm.com or 701-356-3743.