The question of whether an individual should rent or buy a home is a hotly debated one with vocal advocates and sound arguments on both sides. There are myths and facts put forth by both camps, therefore it is often difficult for a prospective home buyer or renter to differentiate between the actual pros and cons in the buy/rent debate. There are a number of factors to consider, including:
• The age of the prospective buyer
• The city in which they live
• The willingness to take on the responsibilities of home ownership
Pros of Renting/Cons of Buying
– Renters do not have to pay directly for any maintenance done to the property in which they live. This is a big deal since renovations and repairs can be a major expense for a homeowner.
– Renters do not have expenses like closing costs and real estate agent fees that come with a home purchase.
– Renters do not have the debt or the risk that comes with home ownership. When someone – places a significant amount of money into one expensive asset, they also take on a lot of risk. With all that debt and risk, there comes a lot of stress. Home ownership is stressful; renting is considerably less so.
– Renters hold onto their money and thus have the opportunity to use it on investments that are more favorable than real estate.
– Renters can save money by not owning a home, but they can also fritter it away on things other home ownership. Renting is most beneficial when an individual is profitably investing their money.
Pros of Buying/Cons of Renting
– Homeowners are effectively saving their money when they pay for their homes. The part of their mortgage payment that is going towards the principal is effectively being saved. This results in homeowners having a track record of being able to grow their wealth to a far greater extent than those who do not own homes.
– The interest on a homeowner’s mortgage is tax deductible, whereas rent is simply an expense.
– Homeowners get full control of maintaining their home. They get to determine the approach to maintenance, which includes steps like choosing the contractor. Usually, none of these things are controlled by a renter.
A part of the decision to purchase a home should include a careful consideration of other investments. If the prospective home buyer’s goal is to increase their wealth, they should look at other investments as well. Is there a more profitable way for them to use that money? They should look at the health of the area in which they plan on buying. The economic health of the city can greatly affect the value of the home.
The fact that there are strong arguments on both sides means that the topic will probably be hotly debated for the foreseeable future. The decision as to which option is best lies with the homeowner and their financial situation as well as the type of responsibility they are willing to take on. There is something to be gained in both scenarios. Renting is not throwing money away as some advocates of buying claim, and home ownership is not strictly a losing proposition as some renters argue. The best option for an individual depends largely on their own short and long-term goals and their plans for building wealth.
Search Homes for Sale in Atlanta
Small Business Owner, specializes in marketing homes for sale in the Atlanta Area by using the most up to date Internet Marketing Tools.
Real Estate Broker serving the Atlanta Metro Area, for over 12 years. If you are planning to buy or sell your home in Atlanta, call Telmo Bermeo at 770-309-6417