Deciding whether to rent or buy is quite the major decision. This choice truly does affect your lifestyle and savings as time goes on, so it is very important to do your homework and be prepared when deciding. This post will talk about the pros and cons of each to make the decision a little easier for you.
Home ownership gives you a sense of stability, so if you are a person who gets restless easily or moves quite often, then this is most likely not a good choice for you. If you need to move frequently, and the housing market happens to be down, then it would be much harder to sell your home and you may actually loose money in the process. Now, if one were to rent in this same situation, you would be able to move without penalty every time your lease ends.
A very popular myth is that by renting, you are “throwing away” money each month. This is not true. Living somewhere will always cost money. The cost of a home sometimes can even be higher than the cost to rent. There are some expenses you can avoid if you rent that you cannot if you are buying such as property tax, water and sewer service, trash pickup and many more.
Renting is alot more predictable financially wise because you always know exactly how much you are going to spend per month. When you own, you may just pay your mortgage and bills, but then next month you may have to replace your roof unexpectedly. Renters would not have this unpredictably. Although, renters could have their rent increase without notice every time your lease is up for renewal.
Owning a home can be unpredictable at times over things you cannot control. The neighborhood you live in could decline, a major employer could move out of the area and the population could significantly decline. Tax deductions are not a reason to buy a home because in the end, the tax break decreases as your proportion of your mortgage payment decreases. Deciding which option is best for you goes beyond the money. It is also about comfort and your lifestyle.