When you’re choosing to either buy or rent a home their are many different benefits and downfalls to consider. These disadvantages and advantages are crucial to take into consideration when you’re deciding if you’re ready to plunge into home ownership or not. Everybody has a unique lifestyle and whether renting or buying a home is the better choice is solely up to your personal preference. So, here’s some pros and cons about buying or renting a home that you’ll need to take a look at before making any final life-changing decisions.
First of all, what are some of the reasons that you may want to rent a home instead of buying one? Some reasons are but not limited to:
No maintenance expenses convenience
Utilities (sometimes) included
Flexibility of not being locked into a long-term commitment
Pros of renting a home:
-Depending on your area it may be cheaper to rent than a mortgage payment
-There is less deposit needed for a down payment compared to owning a home
-No risk of home price depreciation
-Can’t be foreclosed on
-You have the freedom to move or downsize when necessary
-Potentially less stress
-No real estate taxes
-Fewer (if any) maintenance costs
-Some utility bills are included in the price of rent
Cons of renting a home:
-No ownership or wealth creation
-Payments never stop when renting
-Rent can/will rise over time
-This may cause the rental payment to exceed a monthly cost of mortgage (depending on your area)
-No tax benefits
-Rules, regulations, and limitations
-You must deal with a landlord or management company
-Temporary deal with less stability
-You must always be at the mercy of the property owner
Pros of owning a home:
-Once your mortgage is paid off their are no more monthly payments needed
-Mortgages are the cheapest loans available
-Fixed payments means that the price will be consistent each month
-No landlord, you are the landlord!
-You can build your home equity and wealth
-Freedom to paint, modify, have pets and decorate your home the way you want
-You have the ability to rent out the home to others
-Can sell and use proceeds to purchase a bigger/better home
-Potentially better situation for children and a family structure
-Sizable tax deductions are possible
-Your mortgage can improve your credit history/score
-Pride that you own your own home!
Cons of owning a home:
-You must pay taxes and homeowners insurance
-Sizable down payment is necessary
-Maintenance costs can be surprisingly excessive
-Home ownership is a long-term commitment
-If you have an adjustable rate mortgage your monthly payment can rise
-Not everyone can qualify for a mortgage
-Obtaining a mortgage is a hassle
-Value of your home may depreciate
-Their is a possibility of you overpaying for your property
-Taxes and insurance usually rise
-Transactional costs of buying and selling
-Your home can be damaged or destroyed
-Can be foreclosed
-Increased liability and responsibility
Remember to choose the best option for your lifestyle and needs but don’t hesitate to ask a professional realtor if you have any questions or are having troubles. Click here to contact an agent today, we would love to guide you through new life steps!
Author:Brian Cordova Phone: 210-865-7653 Dated: June 10th 2016 Views: 240 About Brian: Brian offers a wealth of knowledge when it comes to your real estate needs in San Antonio. Whether y...
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When you’re choosing to either buy or rent a home their are many dif
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