There comes a time
in everyone’s life where they have to make the
ultimate decision and decide whether to buy and own
their own home or continue to rent. It’s a huge
decision as both have notable benefits and disadvantages
and it is not one to be taken lightly. So lets have
a look at these advantages and disadvantages to see
which option is really the best option for you.
Owning your own home is the traditional dream that
practically everyone has, especially when it comes to
starting a family. It gives you a feeling that you have
accomplished one of your goals and that you are both
financially and emotionally secure as well as giving
you a great sense of community. But is it the right
decision for you? Lets have a quick look at the advantages
and disadvantage of buying and owning your own home.
Advantages:
• You set your own rules
• You have a sense security
• You have made a great investment
• You have a sense of freedom
• You get various sorts of tax rebates and deductions
• Your repayment is usually the same or sometimes
even lower than it would cost to rent
• Your repayments aren’t wasted like rent
– they are going into owning your own home
• You have the freedom to do what you like in
terms of renovating and decorating your home and gardens
• You build equity in your home over time
• You have a better credit rating if you ever
needed a loan again
Disadvantages:
• You are liable for any accidents and injuries
on your property
• You are liable for any damage that is caused
to you neighbors property if it stemmed from yours.
For example if you have a tree that has a branch hanging
over the neighbor’s yard and it breaks off, it
can cause damage to their house which you are responsible
for.
• You are responsible for any maintenance in,
on, or around your home
• You haven’t the ease to just pack up and
move when ever you want
• You have a huge loan that needs paying off even
if you are having financial hardships
• You are responsible for all the insurance on
your home and land
• Varying equity rates
• You will need to pay out a large down payment
up front
• You have property taxes to pay
Renting is something most of us start out doing and
many people are comfortable doing it all their lives.
There are many advantages to renting a home but there
are also a few disadvantages. Let’s have a look
at them.
Advantages:
• You can up and leave as soon as your lease is
up
• If you hit financial hardship you can again
move
• You have little or no responsibility for maintenance
• Sometimes utilities are included in the rent
• Sometimes you have free use of amenities such
as laundry, pool and other sorts of actualities
Disadvantages:
• You have little or no freedom in what you can
do with the place
• You may face increasing rent
• You have limited space for your money
• You are not eligible to get any tax deductions
• You are at risk of being evicted
• The house could be sold and you can be asked
to leave
• You could have restrictions on certain things
like noise and pets
• You could have a restriction on how many people
can live with you
• Your rent isn’t going into a productive
investment for you
As you can see clearly there are many advantages and
disadvantages to owning your own home and renting. Some
have advantages and disadvantages the other doesn’t
have, but both can be a comfortable way to live. When
it really comes down to it you have to choose the one
that suits you’re financial, emotional and lifestyle
needs at this time. You have to take your future into
account as well, will you want to be tied down and take
responsibility for a huge investment or will you prefer
the freeness of being able to move whenever you please?
It can be quite a hard decision to make and it is one
that needs a lot of time and thought before you proceed
to take any further steps.
MT |
