Should I Buy or Rent?

The question for many individuals in search of a place to call home is: “Is it more beneficial to buy or rent?” While the decision is personal preference, we would like to provide you with the advantages and disadvantages of both prospectives.

There are many advantages to buying a home. A homeowner’s mortgage goes towards the ownership of their home and the property builds equity. Also, the average homeowner’s mortgage will decline after several years of paying their mortgage. Many homeowners qualify for annual tax benefits which in some way or form reduces the mortgage. Homeowners are not dependent on landlords to maintain the property and are free to change the décor and landscaping of their home.

There are also some things that should be taken into consideration before purchasing a home. There is a possibility of foreclosure and loss of equity if the homeowner fails to make payments. Also, in some cases the homeowner may be responsible for such things as: property taxes, home and causality insurances, and maintenance of home and property.

There are a couple advantages to renting. When the lease expires the renter can move if they choose. Also, in most cases, the renter has little or no responsibility for maintenance of the home and property.

However, there are many things people should consider before renting. Many will say that renting is like throwing money down the drain. The amount of money a renter spends on rent can be about the same or less than the amount a homeowner spends on a mortgage. The difference is that at the end of the renter’s lease the renter has nothing to show for the rent they have paid into their home. Also, in many cases a renter experiences an annual 2-5% increase in their rent which they have no control over. There is also the possibility of eviction with little time to move or find a suitable place to live.

Given the advantages and disadvantages of buying and renting, people should ask themselves which one better suits their needs. Also, when making a decision to buy or rent, one might want to use a buy vs. rent calculator. There are several sites that provide this tool. One recommendation is to visit http://michaelbluejay.com/house/rentvsbuy.html.

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