There are three major points to consider when buying verse renting a home. These major points should include return on your investment, maintenance on your home, and the prestige factor. There are pros and cons to both sides of this spectrum.
When you own your own home, you will get a return on your investment. Property values go up every year. You are constantly gaining value and equity, which is just as good as money in the bank. Also, the interest you pay on your home loan is tax deductible. With renting, you are putting money in another person’s pocket.
Maintenance and upkeep are major issues when buying verse renting a home. If you are renting, you do not have to think about maintenance and upkeep. The tenant is not responsible for maintaining the property. The landlord usually takes full responsibility for maintaining a rental property. When purchasing a house, you should consider the responsibility of maintaining the property yourself; and expense that goes with being a home owner.
A final factor to take into consideration, when deciding whether to purchase or rent a home, is prestige. There is a certain amount of pride that goes into owning your own home. It is your property and you may do with it as you please. From paint colors to landscaping, all decisions are yours to make. This freedom is usually not enjoyed by a renter.
In conclusion, three of the key factors that should determine whether a person wants to buy as opposed to renting a home are: return on your investment, maintenance of the home and the prestige factor. Families should put a considerable amount of thought and time into the decision-making process when looking to buy or rent a home. It is not a decision to be made on a whim.