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PROS And CONS Of Buying Vs. Renting A Home

There are clear-cut differences between buying and renting a home. Renting means moving without penalties when lease time expires. The fundamental myth concerning renting means, you will throw away money monthly. When you rent space for living, you are aware of the amount you spend monthly paying up for space.

On the other hand, buying a home brings full ownership of the property, and as such, you are entitled to benefits. You comfortably live without a monthly rent fee; however, the general cost is higher compared to renting. Besides, you are entitled to the following expenses:

Pool cleaning
Tree trimming
Pest control

Property taxes
Earthquake insurance
Homeowners insurance

Advantages of buying a home

High privacy levels
Property appreciation and build equity
Home pride ownership
Improves stability
Choice of location

Solid investment
Builds investor credit
Modification freedom
Cheap
Stable monthly payments

Disadvantages

Long-term financial commitment
Subject to maintained costs such as fixing a broken toilet and furnace replacement, which can be expensive

Mortgage payments are higher compared to rent
Buying require down payment, closing costs and moving expense

Advantages of renting a home

Financial flexibility and stability
Career flexibility
Low maintenance costs
No market risks associated
Indirect payment of taxes and insurance fee

No outlay cash required
Bills are inclusive of rent
Decreased stress
Less cleaning area
Freedom to change neighbors at will

Disadvantages of renting a home

Lack of personal choice such as decorating the home as per your choice
Landlords may ignore taking responsibilities; therefore, renters end up living in harsh conditions
Rent increase without involvement or notice
Majority of places with renting houses are overcrowded. This is vulnerable to cases of insecurity, poor sanitation, noise, and diseases.
Rental houses may not be available in your favorite places that you would like to stay with your family

This article sensitizes on the pros and cons of buying vs. renting a home. Read and make a decision today that is within your budget.

CastleStone Homes