Buying or renting a house is perennially a hot topic of debate. Virtually all adults ask themselves at one point or another whether to buy or rent a house especially when they consider their goals and plans for the year ahead. Practically, both has its own merits and highly depends on three principle factors
- Where you choose to live
- Whether you are willing to do home maintenance and improvement all by yourself.
Considering the above factors, let’s find out why should you buy or rent a house
Reasons to buy a property
Appreciation, a major factor
Property is considered a safe and steady investment. The value rises while the debt amount drops. Home price rises every year, even during the period of recessions. Typically, the value of a house accelerate at the rate of inflation and sometimes it’s a bigger increase. So, when it is a matter of long-term investment, yes, buying a property is the ideal solution.
Tax deduction really matters
Real estate property taxes meant for a first home are fully deductible for income tax purpose. In addition, you can also deduct the mortgage interest. Also, those who work from home, are eligible to take deduction for their home office and shares of utilities.
Equity is important
When you have a home mortgage, you are increasing your degree of ownership in your house with every payment. The payment is applied to the principal balance of your loan. The primary portion of your principal and interest payment increases every month. It is lowest on your first payment and highest on your last payment.
No need to worry whether to put up another picture frame on the wall. Simply hammer away! They are your walls. Paint them, decorate the house, plant as many trees as you like and enjoy the forever. That’s the best part of owning a house. Home ownership gives a sense of stability and security.
Reason to rent a property
No longer have you had to think of the distance if you get a great job offer which is 500 miles away. You have the flexibility to choose your apartment closer to your workplace. If situations in your personal life demands a larger or smaller dwelling, renting seems to be the perfect solution to move to a place that fits your requirements.
No hassle of maintenance
When the water pipe leaks in your washroom, you do not have to head towards a service provider who repairs the pipe. Instead, you can head towards the telephone and call your landlord to solve the problem. In some cases, the landlord also pay for utilities including water, garbage, and sewage and in some cases hot water and heat.
Lesser monthly cost
Compared to mortgage, property taxes and insurance, rentals are cheaper. Even when the interests’ rates and home prices fell in early 2012, renting was still inexpensive especially if you plan to spend fewer than 10 years in your house.
Creating a history of on-time rental payment help to build the amount of credit required to qualify for a mortgage.
You can choose to buy or rent a property based on your priorities in life. So enjoy!