Advantages And Disadvantages Of Renting

The Advantage of owning a home is that the equity builds up . It builds up as the mortgage balance decreases. The home may even gain value. If one is renting , they can never gain equity. This is even if the home gains value. This is a disadvantage of renting , When one owns their own home, They can remodel the house, they can redevelop the house. This they can do as they see fit or can afford to. When renting , this is not possible to they extent that you would like. It is almost non existent. Owning a home has tax advantages Renting on the other hand does not have tax breaks available. www.ourfamilyplace.com (n.d)

On the other hand , renting has its advantages in that the fixed costs do not change for the duration of the lease contract. Rent is fixed for a certain period. It does not change. Whilst owning a home , has the disadvantage that the costs are not fixed. They may change as the interest rtes may fluctuate. Renting has the advantage that when the lease expires , one can simply leave. They do not have to renew the lease. If on the other hand you own the home , you generally have to sell the house when you want to move out. Renting has its advantages in that , you do not have to maintain the property. Most of the costs

There are expenses like Ernst money. This is where the buyer will pay to the owner a small amount of money to show that they are serious about buying the home. Martucci (n.d). You may be required to do a home appraisal when buying. You may also be required to do a home inspection, to find out if there are any faults etc. Al these cost money. Martucci (n.d).. When buying a home one may be required to pay property taxes in advance. This may be up to 6 months in advance. These may be a disadvantage. There are costs also like loans repayments, Homeowners’s insurance, Private Mortgage Insurance among other costs. Martucci