The Pros and Cons of Renting Versus Buying
For the fact your interest has been piqued in looking at this blog, you are already wondering about the pros and cons of renting versus buying a home. The primary reason why many buy a home is to build equity. That said, equally si-highlight--primary for savvy homeowners and prospective homeowners is to weigh in the costs and benefits of a purchase. Outside of the financial gains in owning, there is the freedom of doing whatever customization you want to your home without any landlord resistance.
Some considerations between renting versus buying:
Reasons to rent
- Flexibility in exploring a neighborhood or area.
- Career uncertainty in possible relocation.
- Income uncertainty can impact borrowing and mortgage payment ability.
- Bad credit can be improved with a history of on-time rental payments, building credit needed to quality for a mortgage.
- No maintenance expenses.
- Utilities (sometimes) included.
But there is a downside, too: You may have no control over the fluctuation of your rent, a big-budget item that can change often. Long-term budgeting becomes more difficult.
Reasons to buy
- Every time you hand over a rent check, that money is gone, while each mortgage check goes towards building equity your ownership of your own home.
- There are many tax deductions to benefit from, including mortgage interest, property taxes, and deductions for those who work from home for home offices and a percentage of utilities costs.
- Creative control. Simply put – if you want to paint your walls every shade of the rainbow, you can.
- If you own, you have maintenance choices. You can decide how to approach maintenance, either doing it yourself or picking your own contractor. If you live in a condominium or homeowners' association, you may pay a monthly fee to have maintenance work covered by the association's contractors.