The Advantages And Disadvantages Of Renting Vs. Owning A Home

Some people might think that renting and owning are pretty similar, but they do have a lot of differences that people tend not to think about. In fact most people don’t do a lot of research on the differences and similarities. Renting a place to live is a wiser choice and is cheaper in the long run, but having a place that you own has a lot of advantages to. Some differences that people don’t think about are maintenance, utilities, and restrictions.

Although the Zorans had good reasons for continuing to rent, what factors might make it desirable for an individual or a family to buy a home?

Disadvantages of leasing include the zero accumulation of equity. Also if the lease period is too long, you could be locked into an agreement for space that no longer serves your needs. Additionally, the property manager or landlord can limit expansion and modification (Spohn, 2010). These issues would need to addressed with the landlord prior to avoid any issues post-signing.

Some economists would argue the above mentioned examples of why rent control is harmful to

are afraid to build any new buildings if in a few years those too will be taken

standings and are more difficult to enforce. Before signing a rental agreement always conduct a preliminary walk-through in the actual premises you intend to rent, so as to identify any problems that should be fixed before you rent. Verbal promises made by the landlord to fix the

But on the other side, if you are renting, unless you damage the property, you don’t have to pay for fixing repairs.

Some of the renting and owning advantages and disadvantages that need to be considered are; The financial obligation. When you rent you commonly have a one year lease, or less, so you are only financially obligated to pay the agreed upon rent for a year, after that you have the choice of signing another lease, or moving somewhere else. When you buy a home, you are obligated for 15, 20 or 30 years. You can sell a house if you need to move, but selling a house is rarely a quick

Owning rental property offers many financial and lifestyle benefits. The number one reward and benefit of being a landlord and having rental property is you own the property. As long as you are not breaking the law in the process, it is yours to live in, enjoy, freely and rent to whomever you chose as long as you follow the law and do it legally.

When someone makes the decision to buy or rent a home they must consider the advantages and disadvantages of each. In buying a home the primary advantage is that you actually own it. You can do whatever you want with it. Also, you are building equity as the years go by. “People today have problems saving for their future” (CNN Money, 2014). However, when they buy a home, the

The most attractive benefit of owning a home is the equity one builds through mortgage payments. (Starobin). For the average person, equity in a home, a valuable asset usually

Down payment: For purchase loans usually customers are required to make a big down payment.

Some individuals may believe that buying a home is part of the American dream and that renting an apartment does not compare, yet satisfied renters would disagree. Even though owning a home provides a sense of security while allowing modifications without permission, renting is preferred more often over buying because the expense of updating, monthly payments combined with utilities, and paying insurance on a home comes with a high price tag. A homeowner does have several luxuries such as forming lasting friendships with their neighbors, making landscaping changes to their yard, painting and designing their home. While that remains true, renting an apartment comes with several different options and

Another disadvantage would be that the roommate would be unreliable. They could be late on their half of the bill. Which is why I said, make sure you monitor their spending habits. Maybe they spent their money for something they didn’t need. It would be understandable if they used the money to fix their car, or for a doctor bill. If they spent their money on things like; a game that cost $40, restaurant food every night, or even a cell phone, when they already have a perfectly

Buying a house provides stability forever unless the owner decides to sell or to move into another home in which the owner gains equity for selling. This is still a huge benefit. Owning a home is a very huge security measure. When a person is an actual homeowner and not a renter he or she can control who actually enters his or her home (Map, 2011). It is easier to purchase home alarm systems and everything that goes on in a person’s home is controlled by the owner. As a homeowner the option of what is allowed and what goes on is controlled by the actual homeowner. If an issue comes up and the owner has to move somewhere else then this is a huge benefit. As a seller a person can earn so much money and it can build equity (Media, 2010). Usually homes sell for way more than the purchase prices, especially if the owner has customized the home, in which was discussed earlier (RP Reality, 2011). The selling price could be a huge benefit to any owner who is selling their home and moving. These benefits cannot be earned by an apartment renter.