What are the Benefits of Buying vs. Renting
It’s the age-old question, “should I rent, or should I buy?” There are several factors to consider when this question is posed. If this is a question you are currently facing, let us try and help by providing you with a few advantages and disadvantages.
The Advantages of Renting:
- Depending on the type of lease you agree to, there are typically more fixed costs associated with renting. A fixed cost is a cost that does not change over time, despite other business factors.
- The advantage of not losing equity. You are not gaining equity either, but homeowners risk losing equity by repeatedly refinancing their homes to get quick cash.
- Renting does not require the same amount of commitment. Renters get to pick up and leave after their lease is up.
- The maintenance responsibility required for renters is significantly less than the maintenance responsibility for homeowners.
- A much smaller amount of money is required at the time of the lease agreement.
Disadvantages of Renting:
- The disadvantage of not gaining equity. Building equity is a key way to build wealth and financial stability.
- Renters do not have the ability to personalize their living space.
- There are no fiscal advantages to renting. Landlords have tax breaks available to them.
Advantages of Owning
- Over time, the balance of your loan will decrease, and your home will build equity. Equity is important to building your financial portfolio.
- You have the ability to personalize your space. Updating and remodeling can also increase the value of your home.
- Tax advantages are available for homeowners.
- There’s a sense of pride in homeownership, which can closely tie you to your community.
- Privacy is a benefit, you usually do not have to share a yard.
Disadvantages of Owning
- The responsibility of repairs and maintaining a home can be a stressor and a financial burden.
- Making a long-term commitment to the location.
Now that you have a better understanding if you should rent or buy and you have determined what fits you the best, you can look forward to Brad at RE/MAX Gold representing you with whichever you decide. You can call at (707) 246-4584 or email him at [email protected].