Homes are special. Everybody wants one. But, they come at a price. One of the biggest questions in real estate that everyone is always asking themselves is, “Do I want to buy a home or rent?” While renting may have its benefits, being a homeowner can deliver unexpected advantages.
THE PRO’S AND CON’S OF RENTING A HOME:
AFFORDABILITY VS INFLEXIBILITY
Renting is affordable, comfortable and perfect for travelers who are constantly moving from place to place. Since there is no long-term commitment, it is much easier to move out of than of a home. In addition, if you really want to live in a neighborhood that is just completely outside of your budget, you could do so by renting.
Lastly, since the monthly bill is not that expensive, renting allows you to invest your money elsewhere. The only thing renters are responsible for are the actual contents of the home since all the other maintenance work (e.g., repairing roofs, fixing faucets, etc.) falls upon the Landlord or Homeowner.
Ironically, homeownership is all about freedom and generating much needed capital, these are two departments where renting simply falls short. Since you are bound by a lease agreement, there are many restrictions to how you are allowed to use your space. For example, you cannot make changes to the property without the consent of the Landlord. Renting offers no ability to generate wealth or income since all the money is going to the Landlord. Speaking of which, they are often hard to contact. Because of the nature of renting, renters may sometimes speak with Property Managers and never even see the Landlord. This 3rd party mode of communication can sometimes result in misunderstandings. Finally, there is no guarantee that your lease will be renewed when it expires.
THE PRO’S AND CON’S OF BUYING A HOME:
WEALTH VS MAINTANANCE
Buying a home is a long-term investment, which means that it can help generate a substantial amount of income and equity. For starters, there is a sense of security and warmth that comes with owning your own place. When you buy a house, it becomes your legal property. Thus, there are few restrictions when it comes to decorating, designing or innovating your new space. You can have as much flexibility and freedom as you’d like.
In the time of financial hardships, owning a home can supply you with hidden monetary incentives. Some even refinance their bond and withdraw cash to make large purchases, tax write offs/deductions, etc. No matter which way you look at it, buying a home is an investment which can bring much prosperity in addition to being the space in which you grow as a person, sleep, eat, enjoy entertaining and/or raise your children.
On the downside, owning a house is a huge responsibility. Supplementary costs such as insurance, interest rates, taxes and general maintenance (i.e., mowing the lawn, buying new appliances, etc.) can make many buyers nervous.
In conclusion, if you are looking for a way to generate income and grow your life into a space designed by you, you should consider owning a home and/or property. If you are looking for a comfortable space, to call your own, and reinvest in yourself; look for your options to purchase a home. But if you’re looking for a temporary space then renting is the way to go.
Silvia Portugal-Singh 