Renting vs Owning Your Own Home; What's Right for You?
At some point in time each of us asks ourselves the question: should I rent or buy a home? Before you ultimately decide you may want to look at the advantages vs the disadvantages of each.
Owning your own home is a dream that many people have, especially when it comes to having a family. It gives you a feeling of having accomplished a substantial goal in your life, and that you are both financially and emotionally secure. It gives you a great sense of community/ neighborhood living.
Here's a quick look at the advantages and disadvantage of renting vs buying and owning a home:
Advantages of Renting:
You can up and leave as soon as your lease is up.
If you hit financial hardship you can move into a smaller/ less expensive place.
You have little or no responsibility for maintenance.
Sometimes some utilities are included in the rent.
Sometimes you have free use of amenities such as pool,etc.
Advantages of Owning Your Own Home:
You set your own rules.
You have a sense of security.
You have made a great investment.
You have a sense of freedom.
You get various sorts of tax rebates and deductions.
Your loan payment can be the same or maybe a little higher than the rent payment.
Your loan payment isn't wasted like rent – it's 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 of Renting:
You have little or no freedom in what you can do with the place.
You may face increasing rents.
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.
Disadvantages of Owning Your Own Home:
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.
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 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 down payment up front.
You have property taxes to pay.
As you can see clearly there are many advantages and disadvantages to owning your own home vs renting. 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. You have to take your future into account as well.
If you want to see the affordability chart: "Whether you can afford to buy" vs "Can you afford to rent" please click the next tab on the home page.
If You are interested in more information
about how to buy a home please contact me
by phone or email.
206-226-6925 or 425-772-8889 (& text)
christin.leupold@att.net
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