Home ownership is one important element for every individual. Everyone dreams of owning a home. There are some people who have achieved this dream. Since time immemorial, families either involved in developing their own properties or renting it. There are some upfront expenditure involved in buying a property. So the youngsters commence their life by renting a space. DC Fawcett In the long run when they are in a financially stable condition several individuals go for buying a property.
The home ownership rates are influenced by some socioeconomic forces. However, deciding upon the appropriate time of purchasing a property is dependent on us and it requires thorough diligence and consideration. This is not same with all the markets.
Though renting may seem to be a good choice by some, let’s look at the advantages and disadvantages of both buying and renting your properties.
Pros of Buying:
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The equity is enhanced with the passage of time. Also you can improve your property’s value through prudent investments. The curb appeal is also one factor that should be considered while improving the value of your home.
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There are many tax benefits specifically laid for homeowners. But again every property owner is not eligible for these benefits. Homestead exemption, Federal Tax Deductions are some of the tax benefits.
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You can even make your home as a source of income through renting the property. But here it is important that you adhere to the local tax laws. Renting out the whole property or part of the property must be decided.
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You are provided with some choices and there is freedom in implementing these choices. However, you should ensure that you don’t violate local building codes. You can do any updates as far as you don’t break homeowners’ association rules.
Cons of Buying
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When there is depreciation in the property it leads to financial loss at the time of selling the property.
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There will be some uninsured maintenance costs to be carried out in your home. You are supposed to meet them.
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There is the negative of huge upfront costs in case of buying a property.
Pros of Renting
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When you are a renter you don’t have to expend for home maintenance costs. You needn’t pay when things such as pipe bursting happens. You just have to inform the landlord.
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Unless things see a steady way renters generally opt for renting. You can easily relocate for the sake of your work.
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Due to the frightening aspect of foreclosure several individuals are not inclined towards buying. But in the case of renting, the individuals need not possess a mortgage that is greater than the property’s value.
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There is a fixed sum set for the lease agreement’s time period in case of renting. Generally, the landlords will inform about the increase in the rental amount beforehand itself.
Cons of Renting
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There is not the benefit of equity enhancement. A standard lease agreement doesn’t give you the chance of building your equity.
- The renters do not get any federal tax benefits.
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There are chances of the landlord increasing the amount of your rent when the present lease comes to an end.
Final note:
As said earlier renting or buying is your personal choice but decide in such a way that you don’t repent for it later.
Dc Fawcett, the founder of the Virtual Real Estate Investing Club, has innumerous suggestions to offer in his blogs. One may get a clear picture of the real estate scenario as he or she goes through his blogs.