Pros And Cons Of Renting And Buying A Home

The American dream. Finding a job, finding a spouse and building a family. It’s something that most people dream of. One of the most important parts of this dream is owning a home. Having a place of your own is almost a symbol of success as an American. However, buying a home is a huge investment that has some downsides that need to be considered. The pros and cons of renting and buying a home have to be considered before taking the leap.

Buying A Home

If you’re considering purchasing a home, it’s important to know exactly what you’re getting yourself into. The purchase of a home is the largest investment that most people will make in their lifetime. In order to purchase a home, most mortgage loans require a down payment of 20 percent. In the United States, 20 percent of the average home price is over $75,000. Even saving that amount of money would be extremely difficult for most families.

After the down payment, you will need to have an emergency fund that would cover any repairs that need to be done. Whether you have to replace an A/C unit or replace a septic tank, this will come out of your pocket. Additionally, you will be responsible for insurance and property taxes for your home.

However, you will gain equity with every mortgage payment and if you happen to pay off your home, you could sell this for a return. The comfort and satisfaction of owning your own home can outweigh all of the difficulties that owning a home may bring.

Renting A Home

Home rental can be beneficial if you haven’t really laid a foundation in a specific area. Renting allows you to move to another area, should an opportunity arise. Also, any repairs that need to be done to the residence will normally fall under the responsibility of the landlord. However, rent payments aren’t going toward something that you will own outright in the future.

Take an account of your life and decide what is most important to you. The pros and cons of renting and buying a home have to be measured to ensure you’re making the proper decision.