Austin’s real estate market has been a wild ride the last few years. Whether Austinites have been looking for a rental home or a home to purchase, locating the right property in a good location at a good price has been an increasingly daunting endeavor. As a result, there is much to consider when deciding whether to continue to rent or to make the leap and purchase a new home. Renting and buying offer unique advantages, but either option carries some downsides as well. Here at Ash Creek Homes, we love helping clients weigh the pros and cons of renting versus buying a new construction home.

A Few Benefits of Renting:

  • Relocation Flexibility: Renting simplifies relocation should career opportunities or personal circumstances change. While breaking a lease often involves costly fees and penalties, it is a simpler process than selling a home.
  • Predictable Expenses: Renting provides predictability regarding monthly expenses because the landlord is responsible for major repairs or maintenance costs.
  • No Down Payment or Closing Costs: Renting requires minimal upfront costs compared to buying a home, as there’s no need for a down payment or closing costs.
  • Opportunity to Save: Renting can provide individuals with the opportunity to use money that would have been used for a down payment to accomplish other financial goals, such as retirement savings, investments, or starting a business.

A Few Downsides of Renting:

  • Limited Control: As a renter, you have limited control over your home and property. You may be unable to make changes, repairs, or improvements to your home without your landlord’s permission. 
  • No Equity: When renting, you essentially pay someone else’s mortgage or building fees. Rent payments can’t be recouped when you move out.
  • Rent Increases: Landlords can periodically increase rent prices, making it challenging to budget for housing expenses. Rent hikes may occur due to market trends, property improvements, or other factors, and can lead to financial strain.
  • Lack of Stability: The flip side of flexibility is always a lack of stability. Renting is a temporary arrangement, and renters sometimes have to move before they’re ready. 
  • No Tax Benefits: Renters do not have access to the tax benefits that homeowners receive when filing their income taxes.

While renting offers flexibility and fewer responsibilities compared to homeownership, it may not be the best option for those seeking long-term stability, equity building, and control over their living space. Let’s see how buying a new construction home from Ash Creek Homes compares to these renting pros and cons.

A Few Benefits of Buying a New Construction Home:

  • New Construction Equals Control: When you build a new home with Ash Creek, you can choose everything from your floor plan to your bathroom tile to whether or not to include individual upgrades like an electric car charging station. The home we build for you will be uniquely yours!
  • Tax Deductions: Homeownership offers tax deductions for mortgage interest, property taxes, and mortgage insurance that can help reduce your taxable income.
  • Appreciation: Historically, real estate values tend to appreciate over time. On average, home values in the Austin area increase by ten percent yearly. Given Tanner Ranch’s stellar location in the heart of Cedar Park, this appreciation will lead to substantial gains in home equity and net worth for our homeowners.
  • Ash Creek’s Warranty: Every Ash Creek new construction home comes with our builder warranty, ensuring you won’t have to worry about paying for unexpected home projects for years to come.
  • Closing Cost Assistance: When you use one of our Preferred Lenders hyperlink here, Ash Creek Homes will pay your title costs, reducing the upfront expenses of buying a home.

A Few Downsides to Buying a New Construction Home:

  • Upfront Costs: Purchasing a home typically involves a significant upfront financial commitment, including a down payment, mortgage payments, property taxes, and insurance.
  • Lack of Flexibility: Owning a home ties you to a specific location. If you need to move for work or other reasons, selling your home can be time-consuming and complicated.
  • Market Risk: The value of any home is subject to fluctuations in the real estate market. While it is impossible to predict future property value, purchasing a quality home in a desirable area like Cedar Park lessens the potential financial risk.


Ultimately, whether renting or buying is the better option for you depends on various factors, including your financial situation, long-term goals, and personal preferences. If the benefits and downsides listed above have nudged you toward purchasing a home sometime in the next year, we would love to show you the beautiful homes we’re building in Tanner Ranch. Click here to schedule a tour or here to request more information from our team.


Note: Special thanks to Todd Turlington, our Preferred Lender from Mortgage Lending Solutions, for inspiring this post with this document!

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