Is it better to rent or own a home? There are many people who would like a simple answer to this question. The answer comes down to where you are at in your life at that moment. Do you prefer the flexibility of being able to move easily or are you looking to stay somewhere for awhile and have the ability to build equity. In an article posted online by Christina Majaski in the article Renting vs. Owning a Home: What's the Difference?, "Real estate ownership is touted as an investment that is likely to build equity and a source of tax deductions. Renting also has its advantages, including little to no responsibility and flexibility. However, people often believe that buying a home, rather than renting, is the more financially sound decision."
Renting offers many advantages including knowing that during a lease term the monthly rent will stay the same, repairs will be handled by management, and flexibility on moving at the end of a lease term. Owning a home offers many advantages too such as flexibility to make any changes in the home, sense of stability, and potential to grow equity. Even though there are advantages to both, there are also draw backs. When renting, the monthly payment is guaranteed to increase year over year and if an owner decides to sell the home, you would need to move quickly. Home ownership has many costs involved such as repairs, utility charges, potential for increases in property taxes, and there is also a risk that property values will decrease instead of increasing.
Christina Majaski reports that there are special consideration for both and she states, "Which option is best for you isn't just about money. It is also about comfort and your vision for your life. Ignore people who tell you that owning always makes more sense in the long run or that renting is throwing away money. Also, disregard those who say that it makes more sense to buy if your monthly mortgage payment would be the same or less than your monthly rent payment."
Whether you decided that you would like to rent or purchase a home, please reach out to our real estate agents at Oceans Luxury Realty as they can help you with finding the perfect home or property for rent.