Thanks to low mortgage rates, many individuals now are buying a home sooner than planned. Is this the right move? Buy vs rent remains a question on the minds of many, and following are some of the advantages and disadvantages of each option.
Renting
When faced with moving, individuals who currently rent often wonder if they should look into buying a house. Renting does offer flexibility, especially for those who may find they need to relocate in the future or those who are uncertain about what the future holds. Homes don't always increase in value, although most do, thus depreciation does need to be considered, and maintenance is the responsibility of the owner when an individual rents.
Obviously, there are drawbacks to renting also. Monthly rent payments may go up, which the renter has no control over, and the renter also has little control over he interior decor of the home, such as wall and carpet colors. Renters aren't building
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Even those homes that don't increase in value still allow a homeowner to build equity, as long as the value of the property doesn't decrease. Homeowners get tax breaks, in the form of mortgage interest and property tax deductions. This can be of help on the homeowner's federal income taxes and help to offer the cost of housing. Housing payments, when a fixed home loan is selected, remain the same over the life of the loan, yet homeowner's insurance and property tax payments may vary.
Homeowners tend to settle into their community more than renters. Their home is an investment, and they wish to invest in their community also. In addition, the home may be used as investment property in the event the homeowner moves. Finally, those who own a home can decorate as they choose, without consulting with others, unless a homeowner's association is in place and governs what may and may not be done to the exterior of the