Having the ability to purchase your own home is one of the most exciting achievements that an individual, couple, or family experiences. With home ownership comes a specific status.
However, there are many who feel that it is not the right time or simply do not have the funds to purchase a residence to call their own. There are a number of benefits and drawbacks to both owning and renting a property.
To start off, choosing to buy is almost always the more expensive option. Most people have to take out a mortgage, or home loan and the monthly payments are usually greater.
A house is definitely a bigger space than an apartment, and the utilities that it takes to heat, cool, and power one will always be more. Add this amount to furnishing, landscaping, and the time and energy it takes to keep maintenance up to date on appliances, you will definitely incur more charges.
Apartments or rentals are most often smaller, which means they require less electricity, heating, and cooling. They are owned and taken care of by a property manager or management company, and these individuals are the ones that are in charge of making repairs and fixing and replacing appliances.
The deposit, plus the monthly rent, may still not be as expensive as a mortgage. However, when you own a residence, you retain the equity that that property gathers the longer you reside there; this is not possible in a flat or temporary home, because you are not the sole owner of the property.
When markets are on the rebound, equity can be a great help. Equity means that the longer you hold the ownership of a property and residence, the more money it will be worth when you finally decide to sell it.
This is not always true, especially with more recent real estate market crashes. However, you will usually gain some amount when it comes to the increase of the property’s value.
Equity is something that you will not be able to gain from renting. The monthly payment that one makes each month basically disappears, because they will not receive any dollar amount when they decide to sell their lease.
As mentioned before, ownership also comes along with a certain societal title. If you are the one that holds the deed to a residence, it means that you have the financial capability to make a down payment, receive a mortgage, and pay the monthly fees that it takes to do so.
There is nothing wrong with renting, especially with current real estate market issues; however, it simply does not carry the same prestige. Buying a house is usually more appropriate for families.
People that hope to live in an area for a while and have their children attend school and make friends there usually want to be able to gain equity out of where they are staying. In this case, purchasing is usually a better idea, because it is stable and you will be able to see some kind of monetary value when you decide to leave.
Leasing is not always as stable, because owners very often lose the deeds to their complexes and must sell them, and thus remove renters. Another problem with leasing is that you do not often have the creative ability to do whatever you wish with the property.
Many managers and landlords do not allow the individuals that are living in their residences to paint, landscape, or alter the style of the place without their consent and approval. When you are the sole proprietor of a space, you have the creative freedom to do whatever you like.
You can plant the types of flowers that you wish in the yard and landscape however you like. You can put a pool or basketball court in your backyard.
Homeowners can choose their paint, appliance, furnishing, and decorative options without having to worry about someone else informing them that it is not allowed. It is for this reason that many have dreams of being able to manage their own place.
There really is not an answer as to which is “better” when it comes to purchasing or leasing; each method is more appropriate for different individuals at various stages in their lives. You must be the sole decision maker when it comes to the type of residence or property you wish to live in.
Jack R. Landry is a resident of Las Vegas and has written hundreds of articles relating to tourism and real estate. He recommends (http://www.Tradewind-lv.com) for your next home in Las Vegas.
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