Renting Or Buying: Which Is Better?
Buying a home is the American dream. It is a goal to which many Americans aspire and a sign of accomplishment for quite a few individuals. But others will tell you home ownership is not all it’s cracked up to be. They will tell you that there are a lot of expenses involved and that renting may be the way to go.
If you are at a point in your life when you are trying to decide between renting and buying, here are a few things to consider:
The main reason people will tell you to buy a home is because it is a great investment. Real estate almost always goes up in value. Therefore, if you buy a home, you will get the money you put into it back while making a significant profit.
However, there are many expenses involved in home ownership and that accounts for money you will never see again. This includes property tax, the interest on your mortgage and money you spend on repairing your home. All of this can end up costing thousands or even millions of dollars.
On the bright side, once you own a home, it is yours. You can do whatever you want to it. You can customize it to suit your needs adding rooms, tear down walls and more. Homes also tend to be more spacious and private then a rental unit.
Perhaps the biggest disadvantage of renting is that the money you spend on rent is money you will never see again. Unless you are renting to own, you will never be able to sell a rental unit to get your money back.
You’re also limited in what you can do to a rental as far as remodeling goes. Of course, this all depends on your landlord, but it’s unlikely you will ever get permission to do anything to change the permanent structure of the apartment. Some landlords may not even let you paint your rental using the colors you prefer.
Rentals also tend to be less private and you may have to follow certain rules while living there. You may have to do laundry at a certain time, you may not be able to have parties and limit the amount of noise you make more so than you would living in your own home.
But the nice thing with a rental is, when something breaks, your landlord will have to get someone out to fix it and they will pick up the bill. You will never have to deal with property taxes or interest.
When you live in a rental, it’s also easier to move. Just give your landlord 30 days notice and start looking for another place. You will not have to deal with the hassle of putting your place on the market and trying to find a buyer.
Renting and buying each have their share of advantages and disadvantages. The right choice depends on your personal situation. Good luck making the best decision.