Before you begin your search for new living space, consider the rent or buy advantages and disadvantages so that you can make an informed decision.
Before you begin your search for new living space, consider the rent or buy advantages and disadvantages so that you can make an informed decision. Whether you choose to stay with a rental apartment, buy your first single-family home or simply buy foreclosed homes as an investment, you'll find that each choice has its pros and cons.
In terms of rent or buy advantages, when it comes to peace of mind, security and privacy, buying your own home is the way to go. When you rent a home or apartment, you are at the mercy of your landlord and must usually ask permission for everything from planting a garden to painting a room. In addition, renters are at risk of their landlords selling the home or even going into foreclosure, forcing an unexpected move. When you own your home, you are the master of your own domain. You can make whatever changes you like whenever you want as long as they follow your town's codes. Unless you fall behind on the mortgage, you know you always have a place to lay your head at night.
When it comes to the rent or buy advantages in terms of ongoing maintenance and repairs, renting is the smarter choice. Upkeep on a home can be expensive, and when a major appliance breaks down, it is your responsibility to replace it. If your furnace quits, for example, you could be looking at between $4,000 and $6,000 to replace it with a used furnace or several thousand dollars more for a new one. You don't have those headaches or those bills if you rent. If a furnace breaks down in a rental apartment, one call to the landlord is all it should take to get the issue resolved.
The question of buy vs. rent becomes slightly more complicated when you are talking about the financial aspects. When you rent an apartment, all you have to pay is your rent each month, while the upkeep and maintenance are left up to the landlord. Unfortunately, you have no financial benefits such as building equity. Plus your rent may increase each year.
As you make your mortgage payments on a house, you are building equity. You also enjoy the benefit of tax deductions on any taxes and interest paid on the home. You can also take out a home-equity loan or second mortgage if you find yourself in need of quick cash. Before you make any of these decisions, it is wise to consult a financial adviser who can talk to you about home buying advantages, look at your circumstances and give you specific advice.
The question of rent or buy advantages doesn't have a single answer. The best choice for you will depend on your future plans, needs and financial situation. If you're not sure where you want to be in five years, for example, renting might be the perfect choice for you. If you are ready to settle in one place for awhile, buying may be a great choice. To browse real estate listings in the area you want to buy, go to RealtyNow for free listings.