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To Rent Or To Buy A Home

To Rent Or To Buy A Home

Many individuals and families at some point will come to a crossroads about whether or not to rent or buy a home. There are many pros and cons to both scenarios which must be fully evaluated in relation to your current lifestyle and future goals. There is nothing wrong with either renting or buying a home, but it is important to analyze both with an open mind. Many people either get stuck in a rut and are fearful of change, renters, or try to keep up with the Joneses or miscalculate their life's trajectory, buyers. If you know who you are, it makes the decision much easier.

Renting A House

Renting a house can be a smart decision for younger people who may not know whether or not they'll be staying put in the foreseeable future. Recent high school or college graduates often relocate in search of employment opportunities or a change of scenery. Those who are young and unmarried have greater freedom and are less likely to buy a home. Renting also make sense while paying off credit cards and saving enough money for a down payment on a home. Many times individuals purchase a house with little down payment or not enough cash on hand for landscaping and other necessary purchases.

Renting does have its drawbacks however, especially when it comes to spending money to line someone else's pockets. All too often, people rent an apartment or house for years and end missing out on two important benefits of home ownership. Monthly mortgage payments help build equity in a property which is cash in your pocket when it is sold. Mortgage interest is also tax-deductible which is a way the government incentivizes people to purchase a house in the first place. If you are going to pay to live somewhere why not make it work for you.

Buying A House

Buying a new or pre-existing home is appropriate for individuals looking to start a family or families looking to settle down in one particular place. It can be quite difficult to have a spouse and a few children in a two bedroom apartment no matter how nice it is. Even a family living in a rented house will have its drawbacks. Owning a home gives you the freedom and flexibility to do what you want with regards to your personal property. Building a deck in the backyard, remodeling a kitchen or bathroom and converting an attic into a workspace tend to be left to home owners.

Many houses and apartments for rent also limit who they will rent to especially when it comes to pet owners. If you love animals and have cats or dogs, owning a home means you will always have a space for your furry friends. Owning a home however makes you responsible for maintaining the property which many are not inclined to do on a regular basis. If you don't mind working in the yard or cleaning the garage then the benefits can far outweigh the costs of buying a house.

Timing Is Everything

When it comes to making the decision on whether or not to rent or buy a home, it all comes down to timing. Different individuals at different points in their lives will evaluate their current situations and determine whether or not renting or buying is appropriate for them. If you try to buy too early you may not have enough money on hand or you could get that job offer in another city. If you rent for too long, you may wind up wasting tens of thousands of dollars that could have been equity in a home. The key is to know who you are, what you want and where you plan to be in the near future and then make a decision accordingly.

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