Is Home Ownership the Right Choice for You?
It's probably safe to say that most people want to own their own home. Home ownership is, after all, referred to as "The American Dream". Nevertheless, the desire to purchase a home should not be assumed or taken lightly. There are many pros and cons associated with renting versus purchasing, and it?s wise to consider them all before making your decision.
Advantages of Renting |
Advantages of Ownership |
Freedom to change place of residence on short notice |
Added tax deductions to reduce tax liability |
Tenant-Landlord laws protect your rights |
Build equity (a form of savings) |
Fixed rent during the term of lease |
Appreciation over time (gain in value) |
No direct property tax (included in rent) |
Ability to borrow against value of home |
Landlord is responsible for major repairs |
Stability/Security |
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Opportunity to develop community |
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Fixed payments over course of loan |
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Freedom to decorate/remodel as you wish |
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Disadvantages of Renting |
Disadvantages of Ownership |
No equity accrued from rental payments |
Less mobility |
Need for permission to remodel/redecorate |
Pay for upkeep/improvements |
Rent can go up with short notice if no lease |
All repairs are up to you |
Possibility of eviction or sale by owner |
Possible yard work |
Landlord makes the rules |
Lack of asset liquidity |
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Property tax increases |
Which way do the scales tip for you?