One of the big questions everyone has to ask themselves at some point is do you want to rent a home or buy a home? There are many factors that will influence the decision. And, while there are advantages and disadvantages to each, neither option is necessarily better than the other just better for your unique circumstances.
- No Maintenance & Repair Costs
When you rent you typically have an agreement in your lease that your landlord will be responsible for the costs of maintenance and repairs. This can save a lot of money even on the small things but particularly if you have something like a flood, fire, or other major repair.
If you travel a lot, are out for long hours every day, or just don’t have time for the upkeep that can come with a home, the lifestyle of renting may be better suited to you. When you rent you are usually not responsible for the general upkeep of your home or apartment’s exterior including landscaping and if something goes wrong your landlord can get into your apartment to fix it.
- Buying is an Investment
When you move out of an apartment or home that you are renting, you will not walk away with any profit and, in fact, may owe money to your landlord. When you buy a home there is a good chance (if it is a good investment), that you will have accrued equity in the home and will walk away with money that you can then put towards a new home.
- Tax Benefits
There are tax advantages to homeownership. While they vary, CNN notes that every homeowner has some tax advantages with homeownership, “Homeowners can also take advantage of tax deductions, which can lessen the cost of owning a home. But keep in mind, the newly-passed tax reform dampened some of the deductions. Buyers are now only able to deduct interest on the first $750,000 of mortgage debt on a home. Plus, homeowners can now only deduct up to $10,000 in state and local taxes, including property taxes — a deduction which used to be unlimited.”