Reasons to Rent:
A major reason for renting a house is due to the fact that you are not responsible for any of the maintenance or major repairs that you did not cause. Cost is another deciding factor. First and last month’s rent as a damage deposit compared to a lump sum of 10,000s of thousands for a purchase.
Top 5 Reasons To Rent
With renting the first month or first and last month rent as a damage deposit is the norm. A down payment on a house is a lump sum of 5 – 25%. Yes, 5% is much less than 25% and it is even half as much as 10%.
An important factor to keep in mind are the mortgage payments. With a smaller down payment, the cost of each monthly payment can be overwhelming. It is a much better option to save for a bigger down payment to lower the cost of the mortgage payments.
It’s hard to know whether you would like the neighborhood or if the type of home right for you without getting a feel for it first. Renting in a neighborhood that you plan on buying in the future is a great way to get a feel without getting locked in long term. A job opportunity in a different city may come up and you won’t be obligated to turn it down because you breaking a lease is always easier than selling a house.
It is also a good way to see if living in an apartment, condominium or a house is more suited for your lifestyle. An apartment may have seen like a great choice at first but it may not have that spacious feel. It is always an option to upgrade or downgrade once you’ve decided on whether you need more room or less.
it is highly advised to save a minimum of 1 -4% of your home’s value for a rainy day from something breaking down. When you are paying rent, all the repairs are done on the landlord’s dime. So there is no worrying when something inevitably breaks down.
No Real Estate Taxes
Mortgages are expensive, to begin with. Now you must also pay a property tax every year. The average American household spends $2,127 a year. That amount saved can go towards everyday costs such as gas and groceries
Market Could Crash
A major reason why someone would buy a home is to invest in something that will increase their net worth over time. If the market crashed when they are forced to sell then that would be counterproductive. That money could have been better invested in a different market.
Reasons To Buy:
Many of us had our dream home in mind for as long as we can remember. One of the best feelings in the world is making your dream come true. The butterflies in your stomach as you sign the papers for your new home. The anxiousness as the takeover date nears. Boxes everywhere as you begin to pack for your new journey. The surreal feeling as you begin the task of moving everything into the new house. As you start to unpack the boxes, reality sets in. You realize that you are finally living in the dream house that you have imagined.
Top 5 Reasons Why You Should Buy
Instead of paying someone else’s mortgage why not pay for your own? If you were paying $1500 a month for the past 3 years for rent, that totals to $4500. In 10 years that’s a lump sum of $15,000!
The prices for houses, apartments, and condominiums have always gone up in the long term. Though not every house is considered the best investment when inflation is considered. Find out how to calculate the appreciation of a home.
Homeowners can deduct mortgage interest payments, eligible expenses and don’t need to pay tax on capital gains if they plan on buying another property until a later date. Find out what type of tax breaks you can expect and deduct.
Sometimes a dream home can be missing just a little something to make it that much dreamier. With buying, you have the freedom to change anything and everything you choose to in the home. Want lime green walls? Go for it. Kitchen remodel? You name it.
Second Income Stream
If you’ve opted for a 2story house, the basement suite can be rented out. The rent would cover a big portion of your monthly mortgage payment. Also with AirBnB there are much more opportunities to cash in on empty rooms and times when you’re out on vacation. Airbnb makes it the perfect opportunity to make the most out of your new home. This makes gives it an even bigger reason on why you should buy a house.