It may be possible to find rental accommodation at a lower cost per month than making mortgage payments. One attractive part about renting is that the landlord is responsible for the cost of maintenance and repairs to the property. In the event that the renter wants to relocate, it is easier to move since the individual does not have to sell a home first.
Disadvantages of Renting
When a person pays rent, he or she does not have the advantage of deducting mortgage interest on his or her income tax. The rental property will likely increase in value over the years but the renter does not accumulate any wealth based on this increase. The amount of rent paid will likely be increased on an annual basis.
A person renting an apartment has less living space than a person who owns a house. He or she may be restricted in what decorating changes can be made to the space, and the renter is not able to replace or upgrade features on the property. The renter must be conscious of other tenants living close by (keeping noise levels down, not walking across the floor while wearing shoes) at all times.
In a situation where the landlord is not prompt in dealing with repairs, it may be inconvenient at best or dangerous at worst to continue to occupy the rental unit until the situation can be dealt with.
Advantages of Buying
Buying a residence has been compared to a forced-savings plan. Each payment made on the mortgage pays down some principal and adds to the equity being built up in the property. The equity can be used as security for a home equity loan (for debt reduction, renovations to the property, children's college education, to pay for a wedding or trip, etc.).
A homeowner can deduct the interest paid on the mortgage on his or her income taxes. If a mortgage with a fixed interest rate has been taken out on the property, monthly housing costs remain stable for the term of the mortgage.
Pride of ownership should not be discounted as an advantage to buying as opposed to renting. The fact that the house is owned as opposed to rented makes it a home, as opposed to a temporary living arrangement. Owning real estate gives us a sense of putting down roots; it's a place that is "ours."
Homeowners can decorate their house to their own taste and make improvements to the property that they choose. If something needs to be repaired, the owner can make arrangements to have it dealt with immediately.
Disadvantages of Buying
Making mortgage payments may be more expensive than paying rent. Owing a home carries a responsibility with it to keep the property in good repair and to keep the property taxes paid and up to date. If a homeowner wants to relocate, it may take some time to sell the house in order to move. It may be expensive to make repairs and improvements to the home to present it in its best light to a potential buyer.
The decision about whether it is better to rent or buy depends on the individual's income, stage in life, and future plans. When a person is at the point where they have a stable income and are planning on staying in a particular location for the foreseeable future, buying a home makes sense.
Even if you are considering buying a dream home, you can always ask if you have the option to rent until a later time. Financing is what determines whether you can afford to buy or rent. What are some of the expenses when owning a home, as opposed to renting? In a nutshell, this always will be the main determining factor between the two.
There are a lot optional points when considering buying a house. When you buy as opposed to renting, you become part of an established community. Being part of the larger consciousness is what this really means. Communities are collectives.
Being a good neighbor, owning a home in a home full of other homeowners is a standard to live up to. It is a given assumption that you will ensure that your yard is mowed and the landscaping is sculpted to conform to neighborhood standards. No one is going to come to your new house and give you a set of rules to abide by. It is assumed by your neighbors that you will conform. This means that you will either be doing this outside maintenance yourself, or paying out to have it contracted for you.
In this situation, you are free to make your own choices about gardening and landscaping. Your personal preferences are preferred and encouraged. In the neighborhood gallery, you are free to be an artist. As long as you are not an abstract artist that loves to copy Jackson Pollack's masterpieces, you are safe. When owning a home, you will be required to do your best to make your home fit in to the surrounding neighborhood.
You don't have to worry about the outside appearance of your house if you rent. All of these things are already done for you. In fact, you probably do not have a choice in this matter. Often times, you do not have a choice of the inside colors of your rooms either. These choices are beyond your control. You are now a renter. These decisions have already been made for you either by the managing company or the owner.
When you enter into a rental agreement you must make sure that you have the first and last month's rent for a deposit. In most cases, you sign a lease to stay for a determined amount of time, move in and leave the rest to the owners. The maintenance is included as a part of your leasing agreement. One of the advantages of renting a home or apartment is if an appliance or toilet breaks down, the management or landlord repairs it.
Owning a home requires the owner to be responsible for maintenance and upkeep. You won't be responsible for the upkeep in you rent a home. The homeowner assumes the responsibilities that come with owning a home.
Home ownership provides stablility. The home is yours. You invest the effort and you get the return for your investment. You feel a real sense of ownership when you own your own home. Your domain is truly your own. With renting, this feeling and security is at best a temporary fix, a band-aid on a temporary situation that, ultimately, you have no real control over. The rent can go up, then you have to pay it, or move out. You can also become evicted. As a renter, these decisions are no yours to make.
Both David Burch & Ricardo D Argence are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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