It has always been said that owning a home is a better than renting, so it is wiser to save up on a down payment as early as possible in order to invest in a house. Though the advice may be true, there are times when real estate is not a good investment. If you are not financially ready, forcing yourself to buy a house is irrational. Owning and renting a home will have their own pros and cons and if you are deciding whether to rent or invest in a house, this article will be helpful to you.
Owning A Home
Pros – When you buy your own home, you no longer will need to pay for rent. Instead, you will be able to save the money for monthly utility bills and maintenance costs. There is also a certain amount of tax deductions included when owning a home, which is to your benefit. Since you will own the house, you can make your own decisions about paint color, renovations and other home improvement styles. Most importantly, you feel the pride of being a homeowner and belonging to a community. You are also able to leave your children or your grandchildren with a piece of property as an inheritance.
Cons – The cost of owning a home is not cheap, because the down payment of a house itself may range between 10 to 20 percent of the value, depending on the bank. Another concern is the property taxes that constantly changes based on the local economy. When you own your own home, you are then completely responsible for any and every repair that needs to be done. Maintenance is also your responsibility to keep your home clean, presentable and safe to live in. You must also be aware that when the real estate market crashes and your property worth drops, you will still have to make the same payments.
Renting A Home
Pros – When you rent a home, you relieve yourself from having a long term commitment. You can sign a lease for as long as you want and leave at your discretion. When finances are a concern, you need not have to worry about having to pay down payment, thus saving you from the stress of having to borrow money and keep up with payments. In terms of repairs and maintenance costs, you will not have to cover for such expenses unless; you are responsible for any damages.
Cons – Unlike the financial benefits you can receive as a home owner, you can find yourself at the mercy of landlords. Although there are legal solutions to any violations landlords may do, it will take time to resolve. If you are a pet owner, you will find it difficult to find a place where pets are allowed. However, if you own a home you have the liberty to bring home any type of pet. You will also have to be considerate of other fellow tenants if you happen to live in a building, so playing the stereo at full blast at any time of the day will only bring neighbors pounding and screaming at your door.
In the end, regardless of whether you rent or own a house to live in, the important thing is turning a house into a home. If you cannot afford to invest in a house at the present, then rent instead and then save up for your future investment.
Valerie Peters is a freelance writer specializing in home improvement and real estate. She regularly contributes articles to www.hayden-homes.com