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Is It Better To Buy A House Or Rent A House?

Many people these days are debating whether to buy or rent. There are of course pros and cons to each. With today’s economy, it is hard to figure out if your job is secure, and whether it is worth the risk of buying, or if you are more secure just renting. All too often, people feel they are financially secure enough to buy a home, only to lose their jobs later, or have some other tough time and find themselves unable to pay their mortgage.

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.

The next thing that is an advantage about renting is that if anything happens, a broken pipe, malfunctioning appliances, or structural problems, you landlord covers this and there is not out of pocket expenses on the part of the renter. In many cases, rent usually doesn’t go up, and you can move out if you need too, with just a month’s notice. This means that you can walk away from the rental without any problems, and even get your deposit back if you leave your rental in good condition.

This doesn’t mean you won’t face disadvantages, when you rent. Some tenants like to personalize their interior space, but your lease may not allow any type of cosmetic changes. Your monthly rental payments don’t go towards equity or asset-building, like buying a home can offer. Some landlords can be unreachable, unpredictable and inattentive. You may become frustrated with repair issues that aren’t fixed, rent increases and even, the threat of eviction.

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.

If you are faced with the argument of whether to rent instead of buy, you just have to consider the advantages and disadvantages of each option. In addition, your personal financial situation and your occupational future should be analyzed. It’s better to purchase a home if your job is secure and you plan to stay in your home for a few years. For those with a less-assured future in their occupation, it may be better to wait out the current economic conditions and rent a home, just in case you need to alter your lifestyle because of lay-off, demotion or relocation.