Buying A Home Vs. Renting: Which Is The Smarter Option?

 Buying A Home Vs. Renting: Which Is The Smarter Option?  Buying A Home Vs. Renting: Which Is The Smarter Option?

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.

Atlanta Homes for Sale

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.

For all home buyers, here is a real estate blog that will show all the home buying steps.

Search Homes for Sale in Atlanta

Foreign Real Estate Investors: How to Purchase Real Estate in the USA?

Telmo Bermeo Real Estate Broker

About Telmo Bermeo

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

More Posts By Telmo Bermeo

Atlanta Real Estate

New Listing - 2 weeks online
$210,000
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,601
SQFT
6796 Foxfire Place Place SW
Atlanta, GA 30349
COOKS LANDING Subdivision
$283,951
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
1,802
SQFT
673 Python Drive
Atlanta, GA 30349
Camden Manor Subdivision
$330,349
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,363
SQFT
7064 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$299,026
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
3,040
SQFT
7057 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
Price Change - 3 weeks ago
$329,990
Single Family Home For Sale
Active
6
BED
4
TOTAL BATHS
3,363
SQFT
663 Python Drive
Atlanta, GA 30349
Camden Manor Subdivision
New Listing - 3 weeks online
$310,270
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,236
SQFT
7024 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$312,132
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,544
SQFT
7014 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$301,438
Single Family Home For Sale
Active
5
BED
4
TOTAL BATHS
3,040
SQFT
7007 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
Foreclosure
$215,000
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
3,080
SQFT
6629 Overlook Ridge
Atlanta, GA 30349
Cooks Landing Subdivision
$171,995
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,623
SQFT
High Grove #203
4921 Lower Elm Street
Atlanta, GA 30349
$170,495
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,623
SQFT
High Grove #204
4919 Lower Elm Street
Atlanta, GA 30349
$171,795
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,623
SQFT
High Grove #205
4917 Lower Elm Street
Atlanta, GA 30349
$169,595
Townhouse For Sale
Active
3
BED
3
TOTAL BATHS
1,467
SQFT
High Grove #206
4915 Lower Elm Street
Atlanta, GA 30249
$4,000,000
Single Family Home For Sale
Active
7
BED
9
TOTAL BATHS
15,159
SQFT
4690 Thompson Road
Atlanta, GA 30349
 
$12,500,000
Single Family Home For Sale
Active
9
BED
14
TOTAL BATHS
26,000
SQFT
4965 Butner Road
Atlanta, GA 30349
 
$263,000
Single Family Home For Sale
Pending
3
BED
3
TOTAL BATHS
2,260
SQFT
3205 Camden Court
Atlanta, GA 30349
KINGSLAND Subdivision
Short Sale
$195,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,639
SQFT
432 Hammock Loop
Atlanta, GA 30349
 
Short Sale
$209,900
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,676
SQFT
2927 Chilhowee Drive
Atlanta, GA 30331
Legacy at Cascading Creek Subdivision
$245,700
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
2,404
SQFT
3492 Dacite Court
Atlanta, GA 30349
Flat Shoals Manor Subdivision
$162,490
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,800
SQFT
6679 Mancha Street
Atlanta, GA 30349
Heritage Park Subdivision

Speak Your Mind

*

Web Analytics