Which is Ideal? Buying Versus Renting a Property
The buy-rent scuffle is one which continues to plague prospective homeowners. Housing is quite volatile and so you find some investors at crossroads when they are trying to make a decision if they should rent or buy.
While some property owners will prefer to buy a property and have it for keeps forever, a few others would prefer to rent and move out when wanderlust kicks in. Well, your decision to rent or buy a property depends on a number of factors which includes your purchasing power and your future plans.
Why You Should Buy a Home
Buying a property is an amazing investment, it the prices of houses in your locale has been on the rise, your best bet will be to invest sooner to enable you remain in the area that may become a residential magnet in the nearest future.
In some instances, you might not want to be a long-term occupant in the property you have bought. Such properties can yield best results when you sell off the profit after its market value has shot up. If you want to build equity, it is advisable to purchase a property.
Why You Should Rent a Home
While being the proud owner of a home has its benefits, we cannot help but stress on some of its downsides. Think of the constant repairs and remodeling property owners are plagued with, and you’d be thankful for being a tenant.
Not renewing a lease is easier than selling a property, you can decide to wake up one morning when your rent is due and change location. A property owner may have to wait approximately 90 days before a property is sold off. In a nutshell, renting can save you some troubles. If you want flexibility, it is advisable to rent.
We cannot advise you to buy a house or rent one because they have their pros and cons. After you have gone through the advantages and disadvantages of buying vs. selling, you can make your decisions.
Renting A Property:
· You are free to become mobile
· You do not pay the bills for repairs or maintenance
· Rented apartments do not have property tax bills
· You are not bugged by dwindling home values
· Your landlord is in charge of things. He can decide to increase the rent or put up the property for sale at any given time.
· You may be required to move at different times
· You might have limited choices of homes to pick from
· There is lack of tax benefits.
Buying a Property:
· You answer to no one but yourself
· There is the possibility of task benefits
· Can assist in building of credit and equity
· Fosters stability especially for those who own schools
· You have the ability to upgrade the property to suit your tastes.
· You may run at a loss if the value of houses dip
· You can acquire expenses that exceed your mortgage payments
· You have to pick the bills for repairs, renovations and remodelling
· Paperwork upfront is high and huge sums of money is required
We have mapped out the benefits/ downsides associated with buying and renting houses, you can do more research to assist you know which plan will work for you.