Owning versus Renting a Home

There are many things to consider before you decide whether to rent or buy a home. Your ultimate decision will depend on how you feel about several issues, such as maintenance, taxes, investments, and personal ideals. While you don’t have to learn about real estate specifics, knowing what you’re getting into will certainly help you make a sound decision.

Here are several issues to keep in mind when deciding whether to rent or buy a home:

• When you own your home, all of the maintenance expenses are yours, including fees you need to pay the plumber when the bathroom becomes clogged or buy new roof when it needs to be replaced. If you rent, these expenses are all the landlord’s responsibility. Also, when you rent, the landlord may also accept responsibility for the yard car needs. When you own, you have to do it or pay to have it done.
• Owning a home also means you’re responsible for any property taxes that may be accrued. To a renter, this is an expense that is paid by the landlord. However, depending on where the home is located, this may not be a major consideration. Explore the tax laws in your area.
• Although owning a piece of property means you’re responsible for the cost of upkeep and maintenance and taxes, it also means you have the opportunity to earn profit from your investment. Making improvements and upgrades may increase your property’s value, as do favorable market conditions, such as healthy capital value appreciation or attractive rental yield rates.
• And finally, owning your own home definitely gives you a great deal of personal satisfaction. Knowing you’ve successfully purchased a home and are providing a good place for your family to live can be very fulfilling. Renting may give you the satisfaction of having a roof over your head and that your bills are paid, but that sense of personal achievement simply isn’t there.

Of course, much of your decision will be based on your financial situation and personal desires. However, keeping these pros and cons in mind before you decide to either rent or buy a home can make the decision easier to make. Renting a home is a lot simpler, but owning one fulfills dreams. Whichever way you decide to go, you’ll do well to take the time to know more about the pros and cons of both before making that final decision.