There are certain pros and cons to just about anything you take the time to ponder and the decision on whether to buy or rent a house is no different. The trick is to compare the advantages and disadvantages and tally them up to see which is the best choice for you in your given situation.
Here are some of the advantages and disadvantages of buying a home versus renting one so you can see how they compare and evaluate them based on your current needs and abilities.
Advantages of Renting a Home – There are some important advantages to renting a home. First of all, you can usually get lease terms for almost any length you choose, sometimes even month-to-month so there is a limited obligation on your part and should your circumstances change you can simply give your landlord notice and move out.
Another important benefit of renting is that you don’t have to do the maintenance. You don’t have to cut the grass, pick the weeds or paint the trim on the house.
You also don’t have to make repairs or purchase major items like a new furnace or roof when they are needed because that is the landlord’s job.
Disadvantages of Renting a Home – Of course there are also some disadvantages to renting. You are under the landlord’s rule to some extent and have to abide by their rules.
You might not be able to put holes in the walls to hang pictures and you might not be able to have a pet if you want to.
Another major disadvantage to renting is that your money is simply being spent and you will not see anything for it in return other than a place to live.
Advantages of Owning a home – There are lots of advantages to owning a home. First of all, it is an investment and you will usually get you more money than you paid when you sell it.
Also , it is your home and you are free to style it as you wish and live the lifestyle you choose there without having to ask for permission first. Owning a home also helps you improve your credit ranking and gives you some security.
Disadvantages of Owning a home – Some of the disadvantages of owning a home are that you have to do the ongoing maintenance and are the one responsible for repairs. You also have more of a commitment since you are probably signing a mortgage for 20 or 30 years and you would have to sell the home if you wanted to move sooner than that.
There you have some of the main advantages and disadvantages to help you compare the pros and cons of renting a home versus buying a home. It is important that you take these comparisons into consideration along with your personal circumstances in order to decide which option is best for you.
Making regular payments on a home mortgage will increase your credit score. Better credit means better financing for your next home purchase, a refinance of the first home and for a vehicle purchase or any other credit purchases saving you thousands of dollars in interest over the years to come.
Right now is the best time to buy a home. The home values in the area have bottomed out and the interest rates on loans are at all-time lows.
We are seeing homes that used to be $200,000 that are now selling at $150,000 or less! The experts say that we are at the bottom of the housing cycle and prices for homes will never be this low again.
You can buy a home that used to be worth $200,000 for only $150,000. Then, as the market cycles back up you will be able to capture the new equity in your home.
The qualifications for buying a home are nearly the same qualifications for renting a home. You need to have okay credit, a deposit and a decent job.
Having a decent job is essential for qualifying for any type of housing. Generally you need to have been in the same line of work (preferably the same job) for the previous 2 years to show stability in employment. You also need to be making at least 3-4 times your payment on a monthly basis. So if your mortgage payment is going to be $1,000/mo then you need to be making $3 ,000/mo or more (as a household) to qualify to buy the home.
Jack R. Landry has worked in real estate since 1988 as an expert on home buying and construction. He has written hundreds of articles on real estate and recommends (http://www.alwaysaffordablehomes.com) for new construction.
|
|