The tremendously low mortgage rates and expensive apartment rents in cities have resulted in some people buying homes despite not enough planning. But, there are still some who are weighing their options before deciding.
Companies like Americas Housing Alliance, LLC choose to tackle both options by providing properties to sell and rent. The choice between renting and buying depends on several considerations.
The Upsides and Downsides of Renting
The main advantage to renting a place is that maintenance is not required. When you have to get something fixed, you just call the superintendent. It’s also easy to move out if a shift in career occurs or if you want to relocate.
The disadvantage of renting is that the monthly payment can increase greatly when your lease ends. On the other hand, when you’re ready to move, renting won’t provide you an asset to sell, so it doesn’t build equity. And you can’t add your own touches or individuality to a place unless you get the approval of the owner.
The Upsides and Downsides of Purchasing
The major advantage of owning a home is you can build equity. The value of a home increases by four percent to six percent yearly, so it can serve as an investment.
Homeowners can also take advantage of tax breaks where they can deduct their payments and taxes from the federal income tax. Besides that, house payments may be fixed-rate, and you have the liberty to decorate your place to your liking.
The disadvantage of buying is that you have to pay for your own maintenance and property taxes. According to the U.S. Government, you will need to pay for your homeowner’s insurance too. There is also a possibility of your home losing value. And it requires cash investment when purchasing.
People will find themselves at a point when they need to consider their future life goals. They are the only ones who can decide whether they can purchase a new house right now or just rent for a while.