Are you trying to decide between puchasing a home or renting a home? It can be overwhelming if you are in a situation like this because you have to think about a lot of things such as the advantages and disadvantages of both sides. It all depends on your specific situation. Owning a home not be the best idea or even possible for some at this point in their lives. You should read ahead to get some help with your situation.
Renting
What is renting? Renting is when you don’t own something and you have to pay somebody else money for it. Renting barely give you any power over the item that you have rented because it is not rightfully yours. You have to pay for it on a monthly basis.
Renting has its own advantages and disadvantages.
Advantages of Renting Property
1. You won’t gain any equity and you won’t lose any either.
2. When the rent of the house goes up, you can simply move out and find another home to rent. Easy.
3. You don’t have to put a lot of cash up front.
4. You generally don’t have to do a lot of work to maintain a rented home.
5. There are fixed prices for renting.
Disadvantages of Renting Property
1. You will never be able to gain any equity no matter what happens to the value of your rented home.
2. You can’t design the house to your needs because it isn’t yours.
3. You don’t have any kind of tax benefit if you rent a home.
Owning a Home has advantages and disadvantages as well
Owning a home gives you power over that item because it is rightfully yours. Nobody else has a right to take it away from you unless you give or sell it to somebody. This in itself is a huge advantage.
Advantages of Owning Property
1. Even if the balance of the mortgage decreases equity still rises.
2. You have the ability to model your home according to your wants and needs. You don’t have to listen to anybody. You can paint the walls or even draw with markers on them for all anyone else cares. It’s your home for crying out loud!
3. You may be able to get many tax benefits if you own your own home.
Disadvantages of Owning Property
1. Equity can vary and may take years for you to gain back out of it what you have put into it.
2. When you have a desire to move to a new place you will have to sell your property which can be difficult in some areas.
3. You will need to make a larger investment in the beginning which is known as the down payment.
What would you do? Buy property of your own or rent a place to stay in for a while. It is all based on your current situation. Think about it thoroughly before you make a decision.
Courtesy of CreditCardShoppe.com
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