Advantages and Disadvantages of Renting and Buying
Choosing between renting and buying a home is a decision that many will have the opportunity to explore. For some, the decision is a lot simpler to make, than others. Whether you decide to buy a home or, opt for the renting option, neither decision should be taken lightly. The purpose of this essay is to explore some of the advantages, as well as some of the disadvantages to buying a home versus renting one. It will shed some light on why some may choose to continue renting their homes, and why others may choose to bare the numerous responsibilities associated with buying a home.
Advantages of Buying a Home
One of the top advantages of buying a home is the security of having a long-term investment, …show more content…
The purchase of a house comes with the financial responsibility of making regular financial commitments, and the task of regular home maintenance. There is also the need for extra finances when it comes to owning a home. Extra expenses associated with owning a house typically include taxes, insurance, property up-keep, and various other fees. When it comes time to sell the home, there is a chance that the homeowner will not make any profit from the sale because of the affect that the economy can have on the property values in your area. Purchasing a home can also decreases the flexibility that one has when he or she decides to move. While renters are free to move after fulfilling their lease agreement, homeowners are more likely to rely on the sale of their home so that another home can be purchased. The process of waiting for home-buyer could very well delay the intended move. Another drawback to buying a home is the obstructions such as unpaid taxes, liens, outstanding mortgages, unknown property owners, etc. A title search on a home is the process of retrieving documents to verify the legalities and ownership of the property. A homebuyer could run into trouble purchasing his or her home of interest if there is a failure to perform a proper title search on a home. The biggest disadvantage associated with buying a home is the risk of the bank foreclosing on your home if you fall behind on your mortgage payments. This …show more content…
Some of the disadvantages associated with renting a home include: the restrictions implied by the lease agreement. Tenants are often limited to what changes they can make to the rental properties, or how the property is used. Should an issue arise at the rental property, renters run the risk of dealing with delays if there has been a rental agent contracted to mediate between the homeowner and the renter. Instead of dealing with the homeowner directly, messages would have to go back and forth between the three parties before concerns can be addressed. Another disadvantage is that process of renting does not accumulate assets for the renter. Money paid for rent typically goes in the homeowner’s pockets, or towards the homeowner’s loan to purchase the property. When renting a property, you also run the risk of enduring annual fluctuations in rental rates due to economic inflation, and after the terms of the lease has been reached, there is no guarantee that the homeowner can and or will renew the
Choosing between renting and buying a home is a decision that many will have the opportunity to explore. For some, the decision is a lot simpler to make, than others. Whether you decide to buy a home or, opt for the renting option, neither decision should be taken lightly. The purpose of this essay is to explore some of the advantages, as well as some of the disadvantages to buying a home versus renting one. It will shed some light on why some may choose to continue renting their homes, and why others may choose to bare the numerous responsibilities associated with buying a home.
Advantages of Buying a Home
One of the top advantages of buying a home is the security of having a long-term investment, …show more content…
The purchase of a house comes with the financial responsibility of making regular financial commitments, and the task of regular home maintenance. There is also the need for extra finances when it comes to owning a home. Extra expenses associated with owning a house typically include taxes, insurance, property up-keep, and various other fees. When it comes time to sell the home, there is a chance that the homeowner will not make any profit from the sale because of the affect that the economy can have on the property values in your area. Purchasing a home can also decreases the flexibility that one has when he or she decides to move. While renters are free to move after fulfilling their lease agreement, homeowners are more likely to rely on the sale of their home so that another home can be purchased. The process of waiting for home-buyer could very well delay the intended move. Another drawback to buying a home is the obstructions such as unpaid taxes, liens, outstanding mortgages, unknown property owners, etc. A title search on a home is the process of retrieving documents to verify the legalities and ownership of the property. A homebuyer could run into trouble purchasing his or her home of interest if there is a failure to perform a proper title search on a home. The biggest disadvantage associated with buying a home is the risk of the bank foreclosing on your home if you fall behind on your mortgage payments. This …show more content…
Some of the disadvantages associated with renting a home include: the restrictions implied by the lease agreement. Tenants are often limited to what changes they can make to the rental properties, or how the property is used. Should an issue arise at the rental property, renters run the risk of dealing with delays if there has been a rental agent contracted to mediate between the homeowner and the renter. Instead of dealing with the homeowner directly, messages would have to go back and forth between the three parties before concerns can be addressed. Another disadvantage is that process of renting does not accumulate assets for the renter. Money paid for rent typically goes in the homeowner’s pockets, or towards the homeowner’s loan to purchase the property. When renting a property, you also run the risk of enduring annual fluctuations in rental rates due to economic inflation, and after the terms of the lease has been reached, there is no guarantee that the homeowner can and or will renew the