If you are thinking about buying a home for the first time, you are probably wondering which option—renting or buying—is the best option for you. Fortunately, there are a lot of different positives for each. There are several points to think about before you make this very important decision.
Renting a Home
Renting a home is a great option for those who are looking for short-term commitment housing. So, if you are a student or know you will frequently relocate due to career or family obligations, you may want to consider renting a home instead of buying. Furthermore, renting is usually cheaper per month than a mortgage. You also won’t have to worry as much about maintaining the property since your landlord should take responsibility for upkeep.
However, there are always potential downsides to owning a home. Since you can’t claim homeownership, you have little to no control over your rental property—so, you may not be able to have a pet or renovate any part of the home. Additionally, some home rental companies can have fraudulent practices.
Buying a Home
If you are ready to settle down, buying a home is likely to be the right option for you. Homeownership comes with many benefits. First of all, you have much more privacy and near total freedom over how you wish to maintain and enhance the home. While your monthly mortgage may be more expensive than a rental property, buying a home is usually a worthy investment since it gives you greater stability, better control, and pride in home ownership.
Luckily, there are also tax incentives to owning a home. If you ever choose to rent out your property or parts of it, the additional income is not often taxed or at least qualifies for tax deductions if itemized properly. So, buying a home may take more effort and money to maintain, but it is often a worthwhile investment.
Making the Decision
It can be difficult to choose between homeownership and renting out a home. Not only should you take each options’ costs and benefits into account, but you should also pay attention to your stage of life, personal or family needs, and the economy. You may also want to use a rent vs buy calculator to discover which option is most affordable for you depending upon your yearly income.
Doing lots of research and careful planning can help you make sure you are making the right decision for you. Choosing whether to rent or to buy is a big decision to make, especially if you have a family to take care of; however, if you keep these points in mind, you will surely make the right choice.
Here’s another article you might like: 4 Hidden Expenses of Home Ownership