Owning vs. Renting – The Big Debate
There comes a time in everyone’s life where they have to make the ultimate decision and decide whether to buy and own their own home or continue to rent. It’s a huge decision as both have notable benefits and disadvantages and it is not one to be taken lightly. So lets have a look at these advantages and disadvantages to see which option is really the best option for you.
Owning your own home is the traditional dream that practically everyone has, especially when it comes to starting a family. It gives you a feeling that you have accomplished one of your goals and that you are both financially and emotionally secure as well as giving you a great sense of community. But is it the right decision for you? Lets have a quick look at the advantages and disadvantage of buying and owning your own home.
Advantages:
You set your own rules
You have a sense security
You have made a great investment
You have a sense of freedom
You get various sorts of tax rebates and deductions
Your repayment is usually the same or sometimes even lower than it would cost to rent
Your repayments aren’t wasted like rent – they are going into owning your own home
You have the freedom to do what you like in terms of renovating and decorating your home and gardens
You build equity in your home over time
You have a better credit rating if you ever needed a loan again
Disadvantages:
You are liable for any accidents and injuries on your property
You are liable for any damage that is caused to you neighbors property if it stemmed from yours. For example if you have a tree that has a branch hanging over the neighbor’s yard and it breaks off, it can cause damage to their house which you are responsible for.
You are responsible for any maintenance in, on, or around your home
You haven’t the ease to just pack up and move when ever you want
You have a huge loan that needs paying off even if you are having financial hardships
You are responsible for all the insurance on your home and land
Varying equity rates
You will need to pay out a large down payment up front
You have property taxes to pay
Renting is something most of us start out doing and many people are comfortable doing it all their lives. There are many advantages to renting a home but there are also a few disadvantages. Let’s have a look at them.
Advantages:
You can up and leave as soon as your lease is up
If you hit financial hardship you can again move
You have little or no responsibility for maintenance
Sometimes utilities are included in the rent
Sometimes you have free use of amenities such as laundry, pool and other sorts of actualities
Disadvantages:
You have little or no freedom in what you can do with the place
You may face increasing rent
You have limited space for your money
You are not eligible to get any tax deductions
You are at risk of being evicted
The house could be sold and you can be asked to leave
You could have restrictions on certain things like noise and pets
You could have a restriction on how many people can live with you
Your rent isn’t going into a productive investment for you
As you can see clearly there are many advantages and disadvantages to owning your own home and renting. Some have advantages and disadvantages the other doesn’t have, but both can be a comfortable way to live. When it really comes down to it you have to choose the one that suits you’re financial, emotional and lifestyle needs at this time. You have to take your future into account as well, will you want to be tied down and take responsibility for a huge investment or will you prefer the freeness of being able to move whenever you please? It can be quite a hard decision to make and it is one that needs a lot of time and thought before you proceed to take any further steps.
For more information or for a free pre-approval, please call Louis at 708-243-1915. Email LVELA@PMFMTG.COM
More people who are renters now qualify to become a homeowner. Don't let fear or ignorance stand in your way. Our job is to educate and advise you. Call us today to take one step closer toward realizing your dream of one day becoming a homeowner.
Sincerely,
Louis Vela