Thursday, May 3, 2018

The True Difference Between Renting and Buying

Both owning and renting have their advantages, but ultimately the decision comes down to your personal circumstances and financial situation. Home ownership is a serious financial commitment that requires you to plan ahead and reflect on where your life is going. One large part of home ownership which many people neglect to address, is the risk associated with owning a home. This powerful factor will help determine if you will be satisfied as a long term renter, or future home buyer.

Renting offers a risk-free lifestyle, where if you are unsatisfied with your landlord you can leave within 12 months of signing your lease. If your taste in apartment style changes, or you decide you need more space, you can quickly find a new home after finishing your lease.

Furthermore, there are established legal protections for renters, promising that broken roofs and gas leaks will not leave tenants penniless and homeless. If you decide to purchase property, you are opening yourself up to large risk and liability factors. Unexpected repairs and maintenance issues can quickly drain your bank account. Furthermore, taxes can change quickly and without notice. Even if you decide to purchase a condominium, homeowner's association's fees can increase monthly, only requiring a majority vote. Rentals can also generate unexpected expenses and increases, and may cost more (in the long run), however renters are paying a premium fee to live without financial and monetary risk. Ultimately, your financial situation and comfort level with the risk factors associated with home ownership, will guide your decision.

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