Should I Become a Home Owner or Rent?

By: Devora Witts

Everyday, thousands of people ask themselves whether to buy or rent their home. There is no general answer to this question but we can provide some information as regards the benefits and drawbacks of both options in order for you to make a well thought decision.

Renting A House Or An Apartment

Leasing is first and foremost an option for those who do not want or cannot be attached to a single location mainly due to their job. There are many companies that require their professional employees to travel from one place to another in order to provide their services in company's offices located in different states.

IT employees, bank's personnel, accountants and auditors are examples of a long list of professionals that usually cannot be attached to a single town and thus, have no reasons for acquiring a property. Moreover, the companies usually pay for rent in these cases so renting does not become an expense which is its main drawback.

Even if the leasing payments are on you, the amount of money you spend on the property's maintenance is insignificant. The landlord is usually in charge of keeping everything fixed and working; only minor repairing and improvements may have to be faced by tenants.

Becoming A Home-Owner

By becoming a home owner you will be adding a real estate asset to your possessions and thus, you will be able to use it as collateral when requesting a loan. This will ensure you will get lower interest rates whenever you need finance making your life a lot easier and improving your ability to save money.

Owning your home you have more liberty to decide home improvements, decoration and anything related to changes in your property. Tenants are too limited on this area and have no right to do home improvements without requesting the landlord authorization to do so.

If the property's value increases, which usually happens, the homeowner's money will not have lost value as it usually happens when inflation makes an appearance. Moreover, this increase on the property's value becomes equity and let's the homeowner to request a home equity loan providing cheap finance as opposed to unsecured loans which are the only option for tenants.

There are many tax advantages associated with home ownership and with mortgage loans, which are not available for tenants. However, there are also taxes that are only associated with home ownership which of course, tenants do not have to face. When it comes to government taxes and tolls it seems like advantages and drawbacks are equally distributed.

Summing Up

Each option has its pros and cons, you need to see what your needs are and which option satisfies them. Even if you decide to rent, do not affect ignorance of the real estate and home loan markets as a great opportunity can present itself and you may let it pass. There is a time in life when everyone wants to have his own home, when you decide it's time you'd better be prepared.

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