Friday, Jan 30, 2015
Renting VS. Buying A House – Pros And Cons
The choice between renting vs. buying a house is one among the biggest financial decisions that many adults have to make every day since renting and buying both present a number of pros and cons. As this decision can be life-altering, as an individual, it is but natural to be rather unsure.
Since every person’s situation is not the same, there cannot be one definite answer to such a dilemma. However, there are a number of things you must take into consideration when making this decision. Keep reading so you can make a good and informed decision that you’ll not regret at any given time.
Pros and Cons of Renting
1.Maintenance expenses- Whether it is taking care of the water leakage, getting a new paint job, repairing the roofing or replacing the floor, you don’t need to worry about the expenses at all if you are a tenant because that’s the work of the landlord (http://www.landlord.com/).
2. Avoiding a depreciating asset is easier- Although home prices have stabilized and are rising in most housing markets, there is no assurance that if you buy a home today it will increase in value over time. Therefore, renting a house is the surest way to avoid owning a house that may depreciate over time.
3. More flexibility – If you value flexibility in your housing and employment options and you also enjoy access to recreational facilities, you should consider renting a home. It is cheaper and much easier to switch to a rental home that it is to sell your home.
4. Affordable houses – Unlike buying a house where you have to worry about repayment of loan over a long period of time, the amount for the rent and deposit can be easily afforded every month through your income. In addition, you get your deposit amount back after the term of lease is over.
* You don’t receive tax benefits
* You are not allowed to paint or remodel with the owners authorization
* Your monthly housing payment may rise as soon as your current lease ends
Pros and Cons of Buying a house
1. You can build equity- As you pay down your mortgage, you get to build equity as long as your house maintains its value.
2. Freedom to decorate- Ability to paint and remodel your house as you please to suit your tastes is one of the best things about buying a home.
3. No more rent increases- You don’t need to worry about the fluctuating rent rates because with a fixed mortgage rate, your actual mortgage payment will stay constant.
4. Buying a home is an investment- If you buy a home and choose to leave it in the future, you can rent it out rather than selling it. With this in mind, it is advisable to choose a house that can make a good rental property in the future. If you are considering buying a house in the near future this is a good resource to consider some options http://www.myhousere.com/.
5. When you buy a house and pay off all the mortgage, it becomes yours and it could be even worth far more than you bought it.
* You have less flexibility than when renting
* You need to spend a lot in maintaining your house
* You have to pay property tax which is a burden
Needless to say, one of the most important factors which will impact your decision whether renting vs. buying a house is the best is budget.