Advantages and Disadvantages of Renting Versus Owning a Home Although a home is a necessity to every human being, not everyone is enthusiastic to buy one. It becomes a choice to either rent or buy a home. This paper will first describe the advantages and disadvantages of renting and owning a home. Finally, the paper will examine the role of a title search when buying a home.
Describe …show more content…
More mobility: Renting a home creates mobility for the renter because there is no obligation to live in a particular home when the contract expires. A renter is always on the move especially when there is evidence of job and career opportunity somewhere.
There are, however, some disadvantages in renting a home. Some of these disadvantages are:
Lack of equity growth or store of value: While a home can increase the owner’s equity and store up value, a renter does not enjoy such privileges.
Lifestyle limitations: One major disadvantage of renting a home is lifestyle limitation. As a renter, the landlord restricts how you live in the property. The agreement term might restrict a renter from smoking, keeping pets, and accommodating friends in the property.
Decorating and renovating limitation: A renter is often not allowed to decorate and renovate a property different from the owner’s expectation. Therefore, the perplexity of a renter’s limitation in decorating and renovating a property is astonishingly …show more content…
When the necessity arises to renovate a home, the owner can satisfy that desire by using the operating expense to accomplish that goal.
Pride of ownership: One advantage of owning a home is the euphoria and pride the owner derives from it. The realization you cannot be evicted as a homeowner brings pride and dignity.
Tax deduction for mortgage interest: This is an incentive to own a home. Homeowners may pay a reduced interest on the amount they paid on the loan that is on the mortgage.
Predictable housing expenses: A homeowner determines the expenses for a home and it could be more predictable because the responsibility of the home lies with the owner.
Some disadvantage of owning a home are Substantial financial obligation: As a homeowner, there are annual financial obligations to repair and maintain the home, insurance, property tax, and monthly mortgage payment that could affect the cash flow (Siegel & Yacht,