Advantages And Disadvantages Of Buying And Renting

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Buying and Renting
Seeking for a place to live is a task that takes consideration of your financial position and personal goals. There are many advantages and disadvantages to both, therefore, you will need to evaluate both sides before making a decision. One is not necessarily better than the other, more so which is better for you. In this paper, I am going to outline the benefits and drawbacks of both buying and renting, with some information that will assist in your decision.
Renting a home is essentially paying a fee to reside in another party’s property, the advantages of this include reduced expenses, having more liquid assets, and being able to move easily (Siegal & Yacht, 2009). As the property is owned by another party, the repairs are generally their responsibility, which reduces your maintenance expenses. Sometimes these expenses can be quite high, for instance, replacing plumbing or a flooded basement. Aside from the deposit you make before moving in, and your monthly payment, you are usually free of financial obligation to the property. Furthermore, your cash will not be tied up in not …show more content…

We know that renting does not provide any type of stored value, the owner’s limit your choices, and they can change your expenses unpredictably; purchasing a home removes all those disadvantages. Furthermore, it can save you money on your taxes. A home is considered an asset, and generally stores its value, there are times in the market that you can sell the property for a profit. Since you are the owner of the property, you have the freedom of your lifestyle choices, you can have pets, paint the walls pink, if you want to (Siegal & Yacht, 2009). At the end of the day it is yours, and you can turn it into whatever you want. One other important aspects are the tax benefits. You will get a deduction based on the mortgage interest you paid all year, improving your

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