By Jerry Warner
Choosing whether you want to rent or buy a house can be a major decision, after all, there will be an expense over the years either way you go but you'll end up with vastly different circumstances depending upon which option you choose. In order to help you to make the decision, below you'll find some of the advantages and disadvantages of both renting and buying a house. Just keep in mind that this is a major decision, and that you should consider all of your options carefully before choosing the one that's best for you and your situation.
Advantages of Renting
When deciding whether you should rent or buy a house, you should consider the following advantages of rental property. In addition to being easier to find and negotiate than property that is for sale, rental property requires a much lower initial investment. There is no loan binding you to the property, and though you may have a lease for a certain period of time there is nothing else that will make you stay there after the lease has expired if you decide that you want to move. Additionally, you don't have to worry about many of the additional costs such as property taxes that are associated with property ownership.
Disadvantages of Renting
Of course, if you decide to rent instead of buy a house there will be some disadvantages that you'll encounter as well. One of the main disadvantages is the fact that while you live on the property you have no rights of ownership. Any modifications must be approved by someone else, and the property owner can often make any modifications that they wish so long as they fall within what is allowed by rental law. The money that you pay towards rent doesn't go toward a purpose such as paying off a mortgage; it's simply money that you're paying to someone else in order to stay in your home for another month.
Advantages of Buying
Obviously, if you want to rent or buy a house you should consider some of the advantages of owning the property that you'll be living on. Home ownership allows you to make all of the decisions within the law pertaining to what is and isn't allowed on your property. Additionally, you will be able to build up equity and establish your home's value should you need to take out a major loan in the future.
Disadvantages of Buying
Just like renting, buying a house has its disadvantages. While it's true that you'll be the owner of the property that you buy, you may be limited by the mortgage lender in regards to exactly what improvements or additions you make to the house until the mortgage has been repaid. You may also find that the added cost of property taxes and other home maintenance expenses is more than you were planning on; being overwhelmed by these costs can be dangerous, as it can also cause you to fall behind on your mortgage payments.
Jerry Warner writes general finance and loan articles for the Bad Credit Loans Online website at http://www.badcreditloansonline.co.uk Article Source: http://EzineArticles.com/?expert=Jerry_Warner |
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