Buying vs Renting your next home

Buying a house is more complicated than just having the money for the down payment and monthly mortgage payments. Owning a house requires a tremendous commitment of funds, time, and attention. For some, home ownership may not be the best thing. Take a look at some of things to consider when making this decision below.

Renting a Home

If you are not financially and emotinally ready to own, renting may be the best bet for you.

Renting comes with benefits such as:

• Moving is easy (you can move within a short time).
• Amenities may be available (pool, tennis courts, social/activity rooms, laundry facilities, security for apartment renters).
• You do not have the large amount of responsibilities.
• Maintenance and repairs are handled by the owner.
• You only have to come up with the security deposit.
• Moving-in costs are low.

There are some disadvantages though as well:

• You will not get certain tax breaks.
• There are no potential gains from the rising value of property.
• You may get smaller space for the same amount.
• Rent rises with inflation.
• The restrictions on noise, pets and kids.

Buying a Home

If you are thinking about buying a house, be sure to take note of these following advatages:

• A house is a form of forced savings - your making monthly payments on an assest that generally grows in value.
• You will be able to take pride in your house knowing that it is yours.
• The home can be used as equity if you need to get a loan.
• The monthly payments will remain the same for a number of years with a fixed loan.

The disadvantages of home ownership may out weigh the advantages for some people because:

• A substantial down payment is needed.
• A house requires a big commitment in time, emotions, and money.
• The house may actually decrease in value if the neighborhood depreciates.
• Your money may be tied up in the house which can prevent you from doing other things.
• Maintenance and repairs may be costly and take a great deal of time and effort.