Pros Cons Of Renting Vs Buying
Buying a house has been an every Americans dream but how much it is realized in practical is a thing to be discovered. For many who can’t afford to fulfill their dreams the renting becomes an easy option. While it all depend on the situations and the financial condition of the prospective buyers and renters let us closely investigate the pros and cons of renting and buying.
RENTING
Pros - It is evident that initial cost burden is comparatively less in renting than in buying.
While you can afford to live in a bigger space paying the same amount that otherwise you could have bought. Depending on your changing financial circumstances you may opt to go for a house that suits all your needs. The headache of repair and maintenance is not yours at all. You can have more money at your discretion to spend and lastly you are not bound to any property you can freely move on whenever the rental contract agreement terminates.
Cons - There is always a risk that landlord may be interested in keeping some other tenant or likely sell the property. The tenant can’t decorate the house as per their choice or introduce new things without the permission of the landlord. Payments done towards the monthly rentals are not tax deductible.
BUYING
Pros-The most advantageous thing about buying a house on mortgage is that the mortgage interest paid monthly is tax deductible. The value of any property increases with time so, owning a one today would give you good investment return in future. You are your own boss so you can do any amount of decoration or modification. You may plan to put it on rent and enjoy the double benefits.
Cons - The responsibility of upkeep, repairs and maintenance is entirely yours. The property taxes and insurance premium costs together would let you stay on a rented house of your choice. In case the property depreciates, you may end up in loss. Free movement gets restricted.
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