Renting Vs. Buying
Millions of Americans ask the same question year after year, should I continue to rent or should I buy a home instead? Everything basically indicates that buying offers more
benefits than renting, so let's explore some of the advantages and disadvantages of buying as opposed to renting. Obviously, money is always a key factor in most people's lives as to, can they even afford to buy a home, however even if money is of no concern
you may want to examine some of the advantages and disadvantages.
Disadvantages to Buying
For people whose work requires them to relocate to other states on a regular basis if they own a home this can be a big Burden, so often their company at the drop of a hat may give them a week or two to transfer to a new state when they are needed. Now they have the worry and hassle of finding a realtor and selling their present home before they can even afford or qualify to buy a home where they have been transferred.
There's never a guarantee that their home will even sell quick and in a soft market it could take even a year. If is doesn't sell then they might try renting but then they will have to take on a new set of headaches worrying about upkeep on the home when needed, finding renters that will take care of the property, and usually most people don't want to rent a home that is on the market for sell.
Advantages to Buying
Buying a home for most offers more freedom and stability for most families. You have the freedom to decorate as you please or add-on to your home without having to answer
to a landlord. It also provides a stable more secure surrounding for your children.
Owning your home builds financial credibility with banks and other lending sources for future purchases later on when you may need them.
When you own your home every payment you make on a mortgage is like putting money
in the bank as you are building equity in your property that can be used for all types of reasons down the road.
Owning a home in general gives people better self esteem and a feeling of accomplishment and a sense of security and belonging.
Advantage to Renting
For young active people who enjoy outdoor activities like Tennis, Swimming Pools, mingling with the hip crowds, and health clubs renting has a lot to offer. There are a lot of great communities where a person can live care-free life-styles without the worries of home maintenance, outdoor lawn care, and worrying about being tied down if they want to move whenever they please.
More advantages of renting are that it doesn't require large initial amounts of cash, as needed when buying a home. Renting only requires a security deposit, last months rent, or both. Which is usually a lot less than is normally needed for a down payment when buying a home. In some cases monthly rent payments may be lower than a mortgage payment.
After couples have raised their families and the children have left home, millions of couples that retire sell their homes and move to communities where they go back to the conveniences of renting. It allows them the care-free worries of home repair, lawn care and the freedom to travel and enjoy their golden years together.
Disadvantage to Renting
Renting offers no tax or equity benefits for you, along with the fact that you cannot claim any deduction for these taxes on your tax return. People who select to rent over the course of their lives will spend hundreds of thousands of dollars on rent payments and have nothing to show for it in the way of a savings or equity. With the rising cost in this up beat economy renting can actually cost you more per month that buying and you are just tossing your money and future savings away.
When you rent landlords have the right to raise your rent at the renewal date which can cost you more money each month and could even price you right out of your home. Factor in all of the restrictions they tend to pose like no Children allowed or huge pet deposits; if they even allow pets, renting can be very aggravating. Don't expect to add that personal touch to any place that you rent as you will often find rules such as no nail holes allowed in walls, no outdoor grills allowed etc..
Renting Vs. Buying You Decide
Both renting or buying do indeed have a place in our society, however if you have settled into a career and want to achieve financial security for yourself and your family then by all means stop paying rent and buy a home. True renting has its place for people who simply can't afford the down payments to buy or for later in life such as retirement.