Advantages to Renting
Rent or buy? It’s a question many people ponder; the answer can be a tough economical and emotional decision to make. We have all heard the saying that renting is like throwing away your money, this does seem to make sense at first, and you hear every so often. But the truth is that it depends on the situation, if you have to get cash advances every month, than buying may not be for you. For others it would make more financial sense to buy a house, and for some renting seems more plausible.
There are advantages and disadvantages to both options however:
One of the greatest things about owning your home is that, it’s yours! Owning, gives you the freedom to do whatever it is you would like, like plant your own garden, or paint your house green. There is much pride in owning your own home, for many it is a feeling of independence and a sign of success.
As the years go by, and you continue to make mortgage payments, you begin to build equity. Equity is the difference between what you owe and what you could sell your house for. Having equity in your home, is like having a small cushion that could be used in case of emergency. It’s risky, but many turn to home equity loans when they need extra money.
Owning a house is a great investment that will reflect positively on your credit. In some cases you may actually find a house that will cost you less in monthly payments than rent would. And you get the added bonus of not having an annoying landlord.
On flip side, there can be some advantages to renting as well, and these include:
The flexibility to move. One the greatest thing about renting is that you have the ability to move because you are not stuck in a long term commitment. I know a couple right now that is dying to move to a different part of the state, but are stuck upside down in their mortgage, and can’t sell. If you want to move and the economy is hurting, you’re going to be hurting too.
No major responsibilities. Owning a home comes with a lot of maintenance, any home owner will tell you that. Renting a home or apartment will save you a lot of time from having to do the annoying constant repairs that homeowners do.
Both renting and buying can be great options, it just depends what kind of situation you are in. If you are a person that likes to move around a lot, then renting might be better for you. If you know however, that you are going to be staying put in the same city for most or all of your life, than you may want to consider buying if the price is right.
Home ownership is basically a lifestyle, and in reality, may not be suited for all of us. Don’t just buy a house because you think it’s a good investment and it should be the next step. Evaluate your goals and your life and see if it’s what you want.