While owning a home is an American dream, there are several rent or buy disadvantages to explore before making such a huge commitment.
Owning a home brings a lot more duties and obligations than you may think.
The age-old debate of buy vs. rent may be on your mind. While owning a home is an American dream, there are several rent or buy disadvantages to explore before making such a huge commitment. Owning a home brings a lot more duties and obligations than you may think.
Buying a home has the pleasant perk of ownership, giving you free reign to do as you please with your house. With this freedom comes enormous responsibility, such as the full burden of dealing with home maintenance and repair. As a renter, you are shielded from this heavy expense, as your landlord is liable for repairing your residence. Repairs and maintenance are hardly cheap and often drain savings unexpectedly. If you buy a foreclosed home, you may have further concerns in this aspect, as some homes require repairs before you can move in. This expense is often out-of-pocket. Of all the rent or buy disadvantages, maintenance and repair should be a major con to think over. You have to be sure you have the means to pay for an unexpected expense, something that goes hand in hand with homeownership.
In addition to the costs of maintenance and repair, expenses also come in the form of property taxes and insurance coverage. As a renter, you don't have to worry about rising property taxes. While in some municipalities these taxes may be several hundred dollars a year, in others they are thousands of dollars, which can make a significantly impact your budget.
Plus, when you own a home, you must pay for homeowner's insurance and similar policies like flood insurance. Keeping on top of these payments can be costly and time consuming, but they are a must in protecting your investment. Similar to maintenance and repairs, these costs can be worked into your budget if you have the income.
While most rent or buy disadvantages are financially related, others are matters of convenience. When you are renting, you may sign a lease, which binds you to a contract requiring you to rent the residence for a set period of time. In order to move ahead of a lease termination date, you may have to pay a fee. Moving when you are a homeowner isn't easy either. Selling a house takes time and can significantly restrict your ability to move.
While buying a home has some disadvantages, they shouldn't deter you from considering the option. Homeownership has plenty of perks and can be extraordinarily rewarding if you can afford it. Weigh the rent or buy disadvantages and see what is right for your financial and life situation. If you want to look at homes for sale in your area, go to RealtyNow now.