Home ownership vs renting a home is a big question for many. There comes a time in everyone’s life where they have to make the ultimate decision and decide whether to buy and own their own home or continue to rent. It’s a huge decision as both have notable benefits and disadvantages and it is not one to be taken lightly. So lets have a look at these advantages and disadvantages to see which option is really the best option for you.
Owning your own home is the traditional dream that practically everyone has, especially when it comes to starting a family. It gives you a feeling that you have accomplished one of your goals and that you are both financially and emotionally secure as well as giving you a great sense of community. But is it the right decision for you?
Here are some advantages and disadvantages of owning your own home...
- You set your own rules
- You have a sense security
- You have made a great investment
- You have a sense of freedom
- You get various sorts of tax rebates and deductions
- Your repayment is usually the same or sometimes even lower than it would cost to rent
- Your repayments aren’t wasted like rent – they are going into owning your own home
- You have the freedom to do what you like in terms of renovating and decorating your home and gardens
- You build equity in your home over time
- You have a better credit rating if you ever needed a loan again.
- You are liable for any accidents and injuries on your property
- You are liable for any damage that is caused to you neighbors property if it stemmed from yours. For example if you have a tree that has a branch hanging over the neighbor’s yard and it breaks off, it can cause damage to their house which you are responsible for.
- You are responsible for any maintenance in, on, or around your home
- You haven’t the ease to just pack up and move when ever you want
- You have a huge loan that needs paying off even if you are having financial hardships
- You are responsible for all the insurance on your home and land
- Varying equity rates
- You will need to pay out a large down payment up front
- You have property taxes to pay.
Renting is something most of us start out doing and many people are comfortable doing it all their lives. There are many advantages to renting a home but there are also a few disadvantages. Let’s have a look at them...
- You can up and leave as soon as your lease is up
- If you hit financial hardship you can again move
- You have little or no responsibility for maintenance
- Sometimes utilities are included in the rent
- Sometimes you have free use of amenities such as laundry, pool and other sorts of actualities.
- You have little or no freedom in what you can do with the place
- You may face increasing rent
- You have limited space for your money
- You are not eligible to get any tax deductions
- You are at risk of being evicted
- The house could be sold and you can be asked to leave
- You could have restrictions on certain things like noise and pets
- You could have a restriction on how many people can live with you
- Your rent isn’t going into a productive investment for you.
As you can see clearly there are many advantages and disadvantages to owning your own home and renting. Some have advantages and disadvantages the other doesn’t have, but both can be a comfortable way to live.
When it really comes down to it you have to choose the one that suits you’re financial, emotional and lifestyle needs at this time. You have to take your future into account as well, will you want to be tied down and take responsibility for a huge investment or will you prefer the freeness of being able to move whenever you please? It can be quite a hard decision to make and it is one that needs a lot of time and thought before you proceed to take any further steps.