Renting vs Buying an Apartment
You’ve entered the great debate: renting vs buying a home. The decision is a tough one and involves a lot of financial responsibility. There are clear advantages and disadvantages in either case. Check out our pros and cons for both to make an informed decision.
Rent: Pros and Cons
Renting can be very convenient. Your landlord takes care of maintenance and upkeep. As tenants of rental property you don’t have to pay for things such as battery replacements in your smoke detector. You’re also not tied to a single place. You also don’t need to worry about bigger financial aspects, such as a hike in your property tax or pay extra for amenities that you as a property owner do not possess. If your rental complex has a gym and a pool, you don’t need to pay extra to cover that expense. That’s extra cash in your pocket every month!
There are downsides to renting. In a lot of ways you’re responsible for someone else’s property. You’re unable to change the color of the walls or the tile in your bathroom, because it’s not your own property. Not all rental properties are pet friendly, either, so you might not be able to adopt a furry buddy. Rent might also spike, so you might be paying two years into your lease.
Buy: Pros and Cons
A purchased home is potentially a financial asset. You can sell it, rent it out, or simply occupy it yourself. Mortgages also tend to be fixed for prolonged periods of time, so unlike rents they won’t fluctuate on a yearly basis. Owning property also can be beneficial when it comes to the tax season, as you will be eligible for tax deductions. There are more fun perks than taxes when you own the property you live in, such as interior design. You can redecorate in any way you want to.
Owning a property is not all flowers and rainbows. You have HOA fees, property taxes, and homeowner’s insurance to pay for. On top of that you’re responsible for your own repairs. If you decide to relocate, you’ll have to sell the place first, which is a whole process of it’s own.