There comes a time in
everyone's life where they have to make the ultimate decision and
decide whether to buy and own their own home or continue to rent.
It's a huge decision as both have notable benefits and
disadvantages and it is not one to be taken lightly. So lets have
a look at these pros and cons to see which option is really the
best option for you.
Owning your own home is the
traditional dream that practically everyone has, especially when
it comes to starting a family. It gives you a feeling that you
have accomplished one of your goals and that you are both
financially and emotionally secure as well as giving you a great
sense of community. But is it the right decision for you? Lets
have a quick look at the advantages and disadvantage of buying and
owning your own home.
Advantages:
You set your own
rules
You have a sense security
You have made a great
investment
You have a sense of
freedom
You get various sorts of tax
rebates and deductions
Your repayment is usually the
same or sometimes even lower than it would cost to rent
Your repayments aren't wasted
like rent - they are going into owning your own home
You have the freedom to do
what you like in terms of renovating and decorating your home and
gardens
You build equity in your home
over time
You have a better credit
rating if you ever needed a loan again
Disadvantages:
You are liable for any
accidents and injuries on your property
You are liable for any damage
that is caused to you neighbors property if it stemmed from yours.
For example if you have a tree that has a branch hanging over the
neighbor's yard and it breaks off, it can cause damage to their
house which you are responsible for.
You are responsible for any
maintenance in, on, or around your home
You haven't the ease to just
pack up and move when ever you want
You have a huge loan that
needs paying off even if you are having financial
hardships
You are responsible for all
the insurance on your home and land
Varying equity
rates
You will need to pay out a
large down payment up front
You have property taxes to
pay
Renting is something most of
us start out doing and many people are comfortable doing it all
their lives. There are many advantages to renting a home but there
are also a few disadvantages. Let's have a look at
them.
Advantages:
You can up and leave as soon
as your lease is up
If you hit financial hardship
you can again move
You have little or no
responsibility for maintenance
Sometimes utilities are
included in the rent
Sometimes you have free use
of amenities such as laundry, pool and other sorts of actualities
Disadvantages:
You have little or no freedom
in what you can do with the place
You may face increasing
rent
Your space is somewhat
limited for the money spent
You are not eligible to get
any tax deductions
You are at risk of being
evicted
If you rent a room - the
house could be sold and you can be asked to leave
You could have restrictions
on certain things like noise and pets
You could have a restriction
on how many people can live with you
Your rent isn't going into a
productive investment for you
As you can see clearly there
are many advantages and disadvantages to owning your own home and
renting. Some have pros and cons the other doesn't have, but both
can be a comfortable way to live. When it really comes down to it
you have to choose the one that suits you're financial, emotional
and lifestyle needs at this time. You have to take your future
into account as well. Will you want to be tied down and take
responsibility for a huge investment or will you prefer the
freeness of being able to move whenever you please? It can
be quite a hard decision to make and it is one that needs a lot of
time and thought before you proceed to take any further steps.
