Rent vs Buying
Rent vs Buying Advantages to Buying
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Even if the market is stagnant, and the value of your home does not increase, you will still be gradually building equity and decreasing the amount of the mortgage.
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You have the freedom to add to, remodel and decorate the home to your own satisfaction.
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There can be substantial tax advantages to owning your own home (you will need to seek legal/accounting advice to determine your own situation).
Disadvantages to Buying
- Your equity may go up or down, or even stay the same, depending on the current market.
- If you want or need to move, you will mostly likely have to either sell your home, or lease it to someone else.
- Repairs and maintenance need to be done by you, or by someone you hire.
- Generally, a down payment is required; thus your initial investment is often greater than when renting or leasing a home.
- Costs of maintaining a home can fluctuate greatly from year to year.
Advantages to Renting
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You are paying on average, 30% less than home buyers are.
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You are not gaining equity, but you are not losing equity, either.
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Maintenance costs are usually covered by the landlord.
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You can move as soon as your lease is up, without the hassle of selling a home.
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You usually have less work to do – most maintenance labor is done by the landlord or someone hired by the landlord.
- Your initial up-front cost is usually much less than a down payment on a home.
Disadvantages to Renting
- Even if the value of the home you are renting increases greatly, you will not receive the benefit.
- You are usually very limited in changes you can make to the home, inside or out.
- If there are tax advantages to be gained, they will belong to the landlord. As a renter, you do not receive any tax breaks.
As you consider these advantages and disadvantages, a professional real estate agent can be invaluable in assisting you in determining what is best for you and your family.