The decision of whether to buy or rent real estate is a major one. Not only will it affect your monthly budget, but it will also affect your lifestyle. While some people choose to rent because of the flexibility of these arrangements, buying a home is the right option for others. Consider the benefits and disadvantages of each option to make an informed decision.
Renting Real Estate
Renting offers a level of freedom not found in an ownership arrangement, but that freedom comes at a cost. Though renters can move without penalty at the end of a lease, it also means they may have to move quickly if the landlord decides to sell or raise the rent. A renter always knows how much they’ll spend on housing, and expenses are more predictable.
However, renters do face unpredictable increases when leases are renewed. By comparison, fixed-rate mortgage holders never have to deal with monthly payment increases. Renters don’t get a mortgage tax deduction, but they do get the standard deduction that all other taxpayers receive.
Owning Real Estate in Roaring Gap
Homeownership offers intangible benefits such as a sense of community, stability, and pride. However, it’s less advantageous for those who like to move around. Real estate is an illiquid asset, and you can’t always sell when you want to.
The cost of ownership is typically higher than that of rending, even if the monthly payments are similar. Here are a few expenses homeowners must pay, but renters can avoid!
- Trash Pickup
- Property Taxes
- Maintenance and Repairs
- Tree Trimming
- Pest Control
- Pool Cleaning
- Homeowner’s Insurance
Depending on your location, there may be additional costs to own a home. When these and other costs are considered, you may find that it’s better to rent real estate and put the savings into an investment account.
Special Considerations During the Decision-Making Process
The decision to buy or rent real estate in Roaring Gap is a tough one to make. Which choice is right for you isn’t just about finances, it’s also about your lifestyle, goals, and overall comfort. While owning makes sense for some, renting is the right choice for others. Life circumstances and real estate markets are varied, and there’s no one solution that’s right for everyone. By carefully considering the pros and cons of each choice, Roaring Gap residents can make better decisions.