Renting Vs. Buying a Home

2014/10/rent-buy-253x300.jpgFollowing recession and the current economic crisis, is buying a home really near to impossible nowadays? The mid TN real estate housing trends now focuses more on building condominiums and their current mindset is that renting is a more viable option. What ever happened to the American dream?
There are still some who strive to reach their American Dream, however, in some cases when economy is poor renting happens to be the best option for them. There are so many advantages in renting a home, and here are some of them:
No Big Down Payment – while this is one of the tedious steps in owning a home. Owning a home requires you to pay for a big chunk of money you can actually move in. Whilst when you are going to rent, you only need to worry about the security deposit before you can move in.
No Real Estate Tax- real estate tax can vary depending on the county and this can prove to be a huge financial burden for homeowners, while renters do not have to worry about this.
Decreasing Value of the Property – real estate market can be shaky and this can be a worry for homeowners because you do not know how much your property will value in the long run. With renting you are not affected as to how the real estate market turns out.
Saves money – Renting proves that you will have to pay lower utility and insurance bills. Not only that, the amount of rent is fixed which gives the renters the flexibility to budget their money. Homeowners can actually raise the rent amount but with notice which still gives the renters the option to plan ahead with their finances.
While some of these pose as the main benefits of renting a home, there are still disadvantages to it. Such disadvantages of these are:
Limited design option– when you own a home, you can do all the alterations you can possible to make your home livable. But renting does not give you that option.
Equity – as opposed to renting a home, your mortgage payment will be tax deductible or it will be returned to you through lower taxes. Furthermore, you can also take out a second mortgage or a line of credit commonly known as Home Equity Line of Credit (HELOC) and the interest you pay on your loan will also be tax deductible. But when you rent a home, none of this is possible.
Whether or not you are thinking of renting or buying a home that still depends on what you think is possible for you. While there could be many benefits of renting, owning a home is entirely different and this gives you such a purpose and it is quite rewarding in the end. This gives you the security that your home is your own, provided that you are capable of making the monthly mortgage payments. Owning a home gives you that different sense of fulfillment. While renting can be very beneficial especially for young couples or start-up families, in the long run, you know somehow at the back of your mind that you would want to own your home.