The argument over renting versus buying includes advantages and disadvantages, when you think about job security and the ability to commit to anything, for a long-term. When you decide to rent, you aren\’t locked into a large financial commitment, such as a mortgage loan you can\’t afford. Those that are presently working may not be confident their present position will provide stable income, in the months to come. Lay-offs and cut-backs can wreck havoc on a family\’s budget.
Home rental may be beneficial for those that don\’t enjoy working in the yard or doing any other kinds of handyman-types of jobs, such as clearing a snowy driveway. Purchasing the required tools and machinery can be other expenses you are spared, when comparing home rental to the purchase of your own home. Some people prefer to spend their time doing other things and a home rental may include landscaping upkeep.
When you have indoor problems with your rental, such as plumbing, air conditioning or heating issues, you can just pick up the phone and your landlord can arrange for repair. When purchasing a home, you are responsible for all of these expenses, besides insurance and taxes. Your rental payment will remain stable for your rental term and if it becomes more expensive, you have the option to move to another location that\’s more affordable, with little advance notification. Your damage deposit can help you afford your moving expenses, assuming you leave the property in good repair.
One the other hand, renting does have its disadvantages. You are not building equity, and don\’t have any money to show for the years you have rented. You have to get permission from your landlord in order to make any changes, like painting or rearranging the landscape. You are also dependent on your landlord fixing things in a timely manner. They can also raise the rent, and even evict you if they want.
Buying a house also has its pros and cons. Buying a house costs more initially, but every payment you make, part of it goes to principle so you are building equity in your home. You can do whatever you want to your home, within reason, so you can repaint the walls, make additions, and change the landscape. If something breaks down, you can replace it with higher energy efficient appliances. Your home is more secure, because you are in charge.
On the other hand, buying a home can be expensive, and not just to move in. If there is a problem of some kind, you are responsible for fixing it. You have to keep you lawn maintained, as well as keep the drive and sidewalks clear in the Winter. If you are part of some kind of HOA, then you have to get permission to do anything on your property. If something happens financially, and you end up going into foreclosure, you run the risk of losing everything, including any equity, as well as your good credit rating.
One of the other things you have to consider when buying a home is that you have to buy extra things for the home. You may have to buy a lawn mower and other yard equipment. Any major problems you have to deal with and pay out of pocket expenses. This can include things like problems with plumbing and electrical.
When comparing home rental or purchase, consider your job stability and whether you plan to live in the same place for at least five years. If your employment isn\’t guaranteed and you are unsure of your financial future, you may be more comfortable with home rental, until you are sure you can afford home ownership and the long-term commitment that goes with it. In today\’s economy, either option may be the best one, for certain people.
At Tampa2Enjoy we are specialist in the Tampa real estate market. If you have any questions or are looking for hard working Realtor give me a call. For details on Tampa, Fla luxury homes or Tampa, Fla MLS visit us at www.Tampa2Enjoy.com.