Many people these days are debating whether to buy or rent. There are of course pros and cons to each. With today's economy, it is hard to figure out if your job is secure, and whether it is worth the risk of buying, or if you are more secure just renting. All too often, people feel they are financially secure enough to buy a home, only to lose their jobs later, or have some other tough time and find themselves unable to pay their mortgage.
Here are some of the pros to renting that many people consider. One is that when you rent, there are many things you don't have to deal with as opposed to buying. One of them is that any property maintenance is done by the landlord. This means you don't have to worry about mowing the lawn, making sure the sidewalks and drives are clear of snow and debris. In addition, because your maintenance is taken care of, there is no buying expensive equipment.
The next thing that is an advantage about renting is that if anything happens, a broken pipe, malfunctioning appliances, or structural problems, you landlord covers this and there is not out of pocket expenses on the part of the renter. In many cases, rent usually doesn't go up, and you can move out if you need too, with just a month's notice. This means that you can walk away from the rental without any problems, and even get your deposit back if you leave your rental in good condition.
There are also downsides to a home rental, especially for those that like to add their own personal touches, such as changing paint color or hanging shelves. Another thing to think about is your monthly payment is gone to the property owner and you won't see any possible return on your monthly expense, known as building equity, with a home purchase. As long as you have a caring landlord that makes quick repairs, you won't become inconvenienced. Absentee landlords can cause minor repairs and maintenance to become a frustrating experience, while greedy ones may raise your rent.
A home purchase can have good and bad points, too. Expect to save more money up, in order to complete the transaction and closing can become a longer process than signing a rental agreement. At least, you are putting money towards ownership in your property, unlike a home rental. If you want to change certain aspects of your home, you're free to make renovations and when something breaks, you can fix it to your satisfaction. Adding insulation or incorporating more efficient appliances can save on monthly energy bills.
Some of the downsides to home purchase are the unexpected emergencies that require a quick repair. You may still need to seek permission to make certain changes, especially if you live in a gated community or subdivision. Board members may not agree with landscaping changes or exterior paint colors, for example. You always need to worry about making your mortgage payments or your equity can quickly dwindle and you may face bankruptcy or foreclosure proceedings, if you lose your job. Upkeep may be a constant effort, unless you hire help.
When you purchase a house, there are many other items you will need to purchase, including furnishings, all the items required to maintain a nice landscape and other unplanned expenditures. When faced with undetected defects in the home, it's your responsibility to fix them and it can cost quite a bit of money, if it's your home's major components involved.
These are just some of the pros and cons of renting and buying a home. You have to consider many factors when it comes to deciding which one to do. If you are financially stable, and have job security, it may be a good idea to buy a home. If you are less secure, and don't know where you may be in five years, it may be to your advantage to rent instead.
Here are some of the pros to renting that many people consider. One is that when you rent, there are many things you don't have to deal with as opposed to buying. One of them is that any property maintenance is done by the landlord. This means you don't have to worry about mowing the lawn, making sure the sidewalks and drives are clear of snow and debris. In addition, because your maintenance is taken care of, there is no buying expensive equipment.
The next thing that is an advantage about renting is that if anything happens, a broken pipe, malfunctioning appliances, or structural problems, you landlord covers this and there is not out of pocket expenses on the part of the renter. In many cases, rent usually doesn't go up, and you can move out if you need too, with just a month's notice. This means that you can walk away from the rental without any problems, and even get your deposit back if you leave your rental in good condition.
There are also downsides to a home rental, especially for those that like to add their own personal touches, such as changing paint color or hanging shelves. Another thing to think about is your monthly payment is gone to the property owner and you won't see any possible return on your monthly expense, known as building equity, with a home purchase. As long as you have a caring landlord that makes quick repairs, you won't become inconvenienced. Absentee landlords can cause minor repairs and maintenance to become a frustrating experience, while greedy ones may raise your rent.
A home purchase can have good and bad points, too. Expect to save more money up, in order to complete the transaction and closing can become a longer process than signing a rental agreement. At least, you are putting money towards ownership in your property, unlike a home rental. If you want to change certain aspects of your home, you're free to make renovations and when something breaks, you can fix it to your satisfaction. Adding insulation or incorporating more efficient appliances can save on monthly energy bills.
Some of the downsides to home purchase are the unexpected emergencies that require a quick repair. You may still need to seek permission to make certain changes, especially if you live in a gated community or subdivision. Board members may not agree with landscaping changes or exterior paint colors, for example. You always need to worry about making your mortgage payments or your equity can quickly dwindle and you may face bankruptcy or foreclosure proceedings, if you lose your job. Upkeep may be a constant effort, unless you hire help.
When you purchase a house, there are many other items you will need to purchase, including furnishings, all the items required to maintain a nice landscape and other unplanned expenditures. When faced with undetected defects in the home, it's your responsibility to fix them and it can cost quite a bit of money, if it's your home's major components involved.
These are just some of the pros and cons of renting and buying a home. You have to consider many factors when it comes to deciding which one to do. If you are financially stable, and have job security, it may be a good idea to buy a home. If you are less secure, and don't know where you may be in five years, it may be to your advantage to rent instead.
About the Author:
Lance Mohr is a specialist in the Tampa real estate market with more than 13 years experience as a Realtor. If you have any questions or are looking for an honest Realtor give me a call. For details on Tampa short sales or Tampa foreclosures please visit our website at www.Tampa2Enjoy.com.
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