subject: Realities behind Buying and Renting a Home [print this page] Realities behind Buying and Renting a Home
Burnaby Condos: Buying a home is a very big investment and not one that should be taken lightly. It is important to consider both the benefits and drawbacks of both, We're going to examine what those are so you can make a wise decision based on your particular situation. This will help you to decide whether it is better to rent or buy a home.
Renting a Home:
Benefits:
When you rent a home, the monthly payment will be given to a landlord. Often, this will be the actual owner of the home, but property management companies are also growing popular. In either case, the rent is due at a set point each month and is paid to the property owner. As a result, money paid is not an expense each month, which comes out of pocket for the renter.
The prime advantage of renting is that as a renter, you are not responsible for repairs or any other maintenance, aside from things like mowing the lawn or perhaps changing the filters.
Another benefit of renting a home is that there is usually little tying the person to the home. So, for instance, if you decide to move to a new city or a new area, you can do so with few repercussions.
Drawbacks:
One of the biggest drawback of renting a home is, general lack of privacy, since the home owner or rental property can come into your house whenever they want, providing they comply a few basic rules.
In most cases, you can not actually refurbish the home as you like. Sometimes the homeowner might allow the renter to paint the walls, but this is usually it and requires the approval of the landlord.
Another drawback is, since a renter does not own the home, living in the home is like a privilege. Conflicts with the landlord can lead to an eviction and if the landlord dies or sells the home, there is no assurance for you to stay after the lease expires.
Buying a Home:
Benefits:
Buying a home has a number of pros and can be a heavenly experience, but since most people don't have the money for the home upfront, they must take out a rather large loan called a mortgage. The level of debt can be a little overwhelming, but since part of each months payment is going towards the principal of the loan, you are not paying out of pocket in the same way as when you rent a home.
One of the prime factor to buying a home is the many tax credits available to a homeowner. There are many tax benefits to owning a home as opposed to renting.
Another advantage of possessing a home is that you can do pretty much whatever you like to it. This means if you don't like the carpet, you can simply tear it up and put down a wood floor. If you want to make the living room bigger, you can knock down a wall and don't have to ask anyone's permission.
Drawbacks:
Of course, the drawback of this is that if something breaks, it will be the homeowners responsibility to fix the problem.
You can' just simply walk away from your home if you do not like the area or your neighbors.
As you can see there is a lot to think about when deciding whether to buy or rent. To help decide what is right for you, you need to weigh up both the benefits and drawbacks discussed above and add your own. While affordability plays a vital role in determining your options, you also need to think about what's right for you now and in the near term, before deciding whether you're ready for the long-term financial commitment of home ownership, or whether you'd be better off keeping your options open by renting for the time being.
