Deciding between renting or buying a home depends on various pros and cons. But a significant factor in making this decision is one’s financial stance. Without a doubt, house ownership is a longing for many. Unfortunately, not a handful of individuals can subscribe to this option. This makes renting a viable second consideration.
In contrast, the least of the troubles could be your finances. Lifestyles, encompassing careers and personal preferences, are also crucial determinants. And especially if you’re on the border between flexibility and stability, your plight regarding decision-making is relatable. Real estate agent Campbelltown says, “proper understanding of your situation is a vital head start in choosing.”
Are you faced with the home purchase vs. rent dilemma? Here are things you should know.
Pros and Cons of Owning and Renting
If you’re looking for a straightforward answer to buying or renting, there isn’t. Essentially, all you need to watch for are the gains and downsides of opting for either. In this regard, let’s consider the pros and cons of renting and buying a home.
Renting Pros
- Less closing costs
- Easy mobility. Packaging to a different location from a rented property is often faster than selling a property.
- Exclusion from homeownership maintenance fees. You don’t have to worry about repairs and damages unless they’re minor and you don’t mind fixing them.
- Predictable housing expenses. Tenancy makes it possible to have unwavering budgets, especially with housing exemption.
- Exposure to various localities. Renting allows you to explore multiple places and facilities and meet new people.
Renting Cons
- Increased rent possibility. As a tenant, you don’t know when your landlord might add to your lease renewal. And depending on the area, the amount can be on the high side. But if you live in places with controlled rent, this might not be the case.
- Limitation to apartment modification. There is only an extent to which a tenant can revamp a space. And usually, the homeowner must be carried along.
- No guarantee of home stability. When your landlord decides to sell off the property, you can become temporarily homeless.
- You’re not building equity. However, the idea that you’re wasting money monthly due to this is flawed. That’s because not all costs of ownership stack up equity.
Buying Pros
- Home valuation may increase over time. That is, you can cash in on appreciation depending on the market.
- You build equity which is a way to amass wealth.
- Tax benefits. Homeowners enjoy certain tax compensations. For example, the mortgage interest deduction lessens external expenses at the nascent stages of your loan.
- Privacy. If you’re a sucker for your space and dislike intrusion, consider procuring your own house.
Buying Cons
- Possible home value decrease
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- Expensive overall costs. If you own a property, the list of your expenses includes property taxes, homeowners’ insurance, homeowners’ association (HOA) fees, and mortgage insurance.
- Maintenance responsibilities. Being the landlord, you’re accountable for the upkeep of the property. Sometimes, this can be costly and unfavorable when comparing your home value to the renovation project.
- Reduced flexibility
Do you want to own a home to build a family? Or rent one to live life to the fullest? Either way, the choice is yours. What counts is to choose what works and matches your pocket condition.
Read More : How to Choose a Realtor When Buying Your First Home
