If you are currently renting a home and the lease is up, it is not uncommon for the idea of purchasing a home instead of signing another lease to pop into your mind. Renting and/or owning both have their advantages and disadvantages. It depends on which option is right for you.
- When the lease is up you can just move You don't have to find a buyer for the home, you don't have to hold open houses, there is no need to worry about curb appeal. Just pack up your stuff and move on.
- Cash Upfront The cash upfront that is required to rent is condsiderably less than the cash up front if you are looking to purchase a home. The typical rental requires first months rent, last months rent and a security deposit that is normally no more than one months rent. For a home that is selling for $250,000 the down payment can range from $8,750 to $50,000 to purchase the home.
- No equity loss You will never lose equity while renting a house.
- Less Maintenance You will generally have less maintenance issues to worry about if you are renting a home or an apartment.
- Equity gain You have the abilty to earn equity when you buy a house.
- Tax breaks There are many tax deductions that can be claimed at the end of the year as a home owner.
- Freedom You have the freedom to make any changes to the house that you like. Unlike renting a home, you can paint your bedrooms purple if you want to.
- CreditOwning a home is a great way to build your credit.
Whether you choose to rent or to purchase a home, the choice depends on your needs as an individual, both options have pros and cons. Choose wisely!