Choosing a renter by your home is good to be a major decision that will not only affect your lifestyle but also your financial health. Real estate ownership is touted as an investment that is likely to build equity as well as a source of tax deductions. However, renting also has advantages which include little to no responsibility and flexibility.
In the United States, most people lean towards ownership, and this is because of the decades-old message that being a homeowner is the heat of happiness and part of the American dream. And real estate is also a large business for everyone, from the mortgage lenders to the real estate agents to home improvement stores such as Lowe’s. Homeownership is a part of the American cultural mindset and the American economy.
However, you should remember that owning a home is always better than renting, and renting is not always as simple as it seems. Therefore, you should always consider the pros and cons of each to figure out which is best for you.
So before we proceed, let’s talk about some of the key takeaways that you should remember. Printing offers flexibility and predictable monthly expenses with someone else handling repairs. Home ownership brings intangible benefits, a sense of stability, belonging to a community and pride of ownership along with tangible assets such as tax deductions and equity. Printing does not mean you are throwing away money every month, and owning does not always mean building wealth in the long run. It is important to be aware of these things before we continue, because you need to decide whether renting or homeownership is your need.
Venting means that you may move without penalty each time your lease ends, but it also means you might have to move suddenly if your landlord decides to sell that property or turn your complex into condos, or in a less dramatic turn of events they might just bump up the rent to more than you can afford. One of the largest myths about renting is that you are throwing away money every month, but the truth is you need a place to live and that is going to cost money one way or another. When you are renting, you are not building equity, but at the same time, not all costs of home ownership will go towards building equity, anyway.
With Britt you know exactly how much you’re going to spend on housing each month and when you own, you might pay nothing more than your mortgage and regular bills in one month, but then the next month you might need to spend $12,000 on a new roof which may not be in coverage of your home insurance.
You should also remember that when you are a homeowner, you have expenses that renters do not. Some of these expenses are property taxes, trash pickup, water and sewer service, repairs and maintenance, pest control, tree trimmer, insurance, pool cleaning, flood insurance, earthquake insurance and more. Some of these things depend on the area that you live in however, most of these things renters would not have to worry about.
So when you are trying to decide whether renting or buying is better, you should look at your lifestyle and how you want to live, and the benefits you want to receive from the place that you are living. If you simply need somewhere with the predictable payment every month, then renting might be for you.
You can always talk to a real estate company, such as Capitol Title, about your real estate needs, and if they don’t have an answer, they may be able to get you in touch with someone who does have the answers you need.