Making the decision on whether to rent or buy a property can be tough. That is why it is a good idea to see a realtor like thehousecompany.com as there are so many aspects to consider. You need to remember that each case is different and there are no strict criteria to make the decision for you. Thus, both renting and buying have their pros and cons .
Advantages of Renting
Lower Upfront Costs – When buying a house, it requires an individual to pay a hefty down payment for the property, including several housing costs like a home inspection, closing costs, etc. Unlike buying, renting will only require an individual to pay the first and last month’s rental payment plus a security deposit to the landlord.
There are times that people tend to change their careers in a short period. When you are in this situation, renting is a better option. When you have plans on moving and relocating to another area due to a career change, you don’t have to worry about any other expenses with the property you currently live at.
No Maintenance costs
When there are several repairs on the property you rent, you do not have to worry and call the hardware store, rather just call your landlord. In most cases of renting, maintenance costs are shouldered by the owner themselves.
· Incidental Expenses – In certain situations that include accidents or damages that an individual has clearly done on the property, the person will only shoulder a part of the cost of the repairs needed and mostly still shouldered by the landlord.
Disadvantages of Renting
- Renting limits you to decorating your own home.
- You are subjected to follow your landlord rules and decisions
- You have no control over price fluctuations in rental payments.
- There is no equity built on the property whenever you pay your rentals.
Advantages of Buying
- Builds Equity – Unlike renting, whenever you pay your mortgage you increase the degree of ownership you have to your property in every payment.
- Tax deductions – Owning a home can also open the opportunity to decrease your property tax payment or mortgage interest. In most cases, the IRS also excludes individuals regarding “capital gains” from the profits of the home when it is for sale.
- Have control over the whole interior and exterior design – owning the home or property means having the full rights to use it whatever way you want. This allows an individual to have complete control of his/her property.
- Maintenance Choices – maintenance of your home can be your decision as well. You could either call a contractor to do the tasks for you or you can be a DIY in the maintenance of your home.
Disadvantages of Buying
Many financial experts say that owning a house is simply an investment. This means that as the dynamic housing market turns into a more vibrant market, real estate markets always vary widely – which means that every consumer should become sophisticated both in their finances but also the data that the market produces.