With present economic issues, including the employment outlook, choosing between home rental or the purchase of a home can be argumentative. There are good points and bad points to compare, in both situations, especially if your workplace is in an economically-sensitive arena. The last thing you want is to commit to a lengthy mortgage agreement for the purchase of a home and then, face a drastic cut in your monthly income. Home rental isn’t as monetarily devastating or legally-binding.
Home rental may be beneficial for those that don’t enjoy working in the yard or doing any other kinds of handyman-types of jobs, such as clearing a snowy driveway. Purchasing the required tools and machinery can be other expenses you are spared, when comparing home rental to the purchase of your own home. Some people prefer to spend their time doing other things and a home rental may include landscaping upkeep.
The next thing that is an advantage about renting is that if anything happens, a broken pipe, malfunctioning appliances, or structural problems, you landlord covers this and there is not out of pocket expenses on the part of the renter. In many cases, rent usually doesn’t go up, and you can move out if you need too, with just a month’s notice. This means that you can walk away from the rental without any problems, and even get your deposit back if you leave your rental in good condition.
One the other hand, renting does have its disadvantages. You are not building equity, and don’t have any money to show for the years you have rented. You have to get permission from your landlord in order to make any changes, like painting or rearranging the landscape. You are also dependent on your landlord fixing things in a timely manner. They can also raise the rent, and even evict you if they want.
If you decide to buy a home, you face advantages and disadvantages, as well. You will need to accumulate a down payment, which is larger than putting down a deposit and first month’s rent, in most cases. Each time you pay your mortgage, you are investing money in your future, however. It’s a nice feeling to do improvements that fit your desires, while repairing maintenance problems, are under your control. If you want to save on your utilities, you can even purchase energy-saving appliances.
Some of the downsides to home purchase are the unexpected emergencies that require a quick repair. You may still need to seek permission to make certain changes, especially if you live in a gated community or subdivision. Board members may not agree with landscaping changes or exterior paint colors, for example. You always need to worry about making your mortgage payments or your equity can quickly dwindle and you may face bankruptcy or foreclosure proceedings, if you lose your job. Upkeep may be a constant effort, unless you hire help.
When you purchase a house, there are many other items you will need to purchase, including furnishings, all the items required to maintain a nice landscape and other unplanned expenditures. When faced with undetected defects in the home, it’s your responsibility to fix them and it can cost quite a bit of money, if it’s your home’s major components involved.
When comparing home rental or purchase, consider your job stability and whether you plan to live in the same place for at least five years. If your employment isn’t guaranteed and you are unsure of your financial future, you may be more comfortable with home rental, until you are sure you can afford home ownership and the long-term commitment that goes with it. In today’s economy, either option may be the best one, for certain people.
About: Lance Mohr is a real estate agent in Tampa with over 13 years of experience. If you have any questions or are looking for an honest, hard working Realtor give me a call. For more information on New Tampa homes for sale or Apollo Beach homes for sale please visit our website at Tampa2Enjoy.com.