Renting Or Buying, What Are The PROS And CONS?

Many people think that owning their own home will always be to their advantage, but at times it just may not be so. Everyone must consider their own financial situation and the current economic indicators before making that final decision to buy or rent, especially if they are a first time home buyer.

The PROs Of Renting:
1. You will have fixed costs for the term of your lease agreement.
2. You will neither gain nor forfeit equity by renting.
3. You need much less cash upfront to rent as opposed to buying.
4. You have much less maintenance and upkeep when you rent.
5. When your lease comes to term you may simply leave as long as all of the bills have been paid
.
The CONs Of Renting:
1. You will never establish or benefit from any equity when you rent.
2. You have no investment in the property.
3. There are no tax advantages or deductions when you rent (unless a portion of the premises is used for business purposes).
4. You have very little ability to improve or enhance your domicile if you rent.

The PROs Of Buying:
1. Even if the value of your property does not appreciate greatly you will still be building equity in it as time goes buy.
2. You will have established a great investment.
3. There are many tax advantages to be gained if you own.
4. You can make all of the design and structural improvements that you want. You have 100% flexibility in creating "the house of your dreams".

The CONs 0f Buying:
1. Rates do fluctuate and so can your monthly budget responsibilities.
2. Buying demands a substantial down payment and closing costs.
3. You are locked in for very long periods of time.
4. Your equity/investment can also fluctuate relative to local market conditions.
5. If you choose or need to move quickly you may be constrained until you find a buyer for your home.
6. All maintenance and repairs, upgrades, taxes and insurance are your responsibility.

Print Page