Renting verse home buying what are the advantages and disadvantages of both?

Answer 1

Well, renting homes, you can't do what you like to your house. You have to buy the rent the house you love because you would have to live there for a while. You won't have to pay mortgage but you would have to pay rent. You would have a landlord and you can't plant flowers or paint your house a different color.

Buying a house is more expensive because you have to buy it. Also, you'll have a mortgage. However, you'll be able to paint the house how you like it, have a garden and that stuff.

Both are affordable but I would rather buy a house, then you'll feel more relaxed, knowing it's your house. You'll have things in your house (colors) that you like. Renting is actually a little cheaper, but you're not owning a house, you're just living in this house that's actually someone else's. Plus, you won't have the colors around you or the garden in your backyard.

Answer 2

Your income, savings, and monthly expenses play an important role in determining how large a mortgage you can afford. To figure out the amount you can afford, please click Affordability.







Savings: Buying


In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.

Buy vs. Rent Comparison
The chart below shows a cost comparison for a renter and a homeowner over a seven year period.



The renter starts out paying $800 per month with annual increases of 5%
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner's payment is lower than the renter's monthly payment
With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years

Years Rent Payment Mortgage Payment Monthly Difference After Tax Savings Yearly Difference After Tax Savings
1 800 1000 -200 -50 -2400 -600
2 840 1000 -160 -10 -1920 -120
3 882 1000 -118 +32 -1416 +384
4 926 1000 -74 +76 -888 +912
5 972 1000 -28 +122 -336 +1464
6 1021 1000 +21 +171 +252 +2052
7 1072 1000 +72 +222 +864 +2664
8-30 Savings increase every year









Monthly Expenses: Buying

Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:

Property Taxes and Special Assessments
Home/Hazard Insurance
Utilities
Maintenance
Home Owner Association (HOA) Fee: Doesn't apply to all purchases. It pays for trash and snow removal and maintenance of common grounds if applicable.
Membership Fee: It may pay for recreational facilities and other services (cable TV).

Answer 3

renting
+flexible, if your job moves you can move
+no money to spend on maintenance
-quality of house may not be what you would like
-you are not gaining by any increase in house value
-landlord can ignore requests for repairs
-landlord can increase the rent

buying
-cost of solicitors, legal costs (stamp duty)
+pride of your own home
+getting on the housing ladder
+can borrow money against the asset value
+your credit rating improves

I would say, under 30 years old, rent. Because you can flit around from one job to another anywhere in the world and not worry. Over 30, buy a home near road and rail commections which give you a wide choice of where to work. Over 53, retire to France (we did!)

Answer 4

It in no way is clever to proceed being a renter and making yet another homeowner wealthy. your domicile will continuously be an asset and the main important investment which you will ever positioned money into. you're able to do in spite of you prefer to do on your domicile without asking permission of the owner, and any advancements you do shows your creativity and additionally builds fairness interior the valuables which will boost interior the fee of your domicile. in spite of in case you do not plan to stay their continuously you are able to sell it in spite of if it is not your dream domicile. The housing marketplace might have chilled somewhat, in spite of if it is not that chilly the place everybody isn't paying for. The expenditures of interest are happening, and there are nevertheless credit worth and mortgageable people who're finding to purchase a house. there is likewise a tax benefit as a homeowner as against a renter. you will get something lower back on your cash each and each month while in comparison with paying money out each and each month as a renter with not something in return. once you make investments money at your residence you're making an investment in a stable investment the place you administration the return on your cash. possessing belongings and making an investment in shares are 2 good returns which you're able to do concurrently. you are able to positioned money into shares and proceed to lease and IMHO you're dropping money each and every time you're making a lease charge.

Answer 5

Rent if you are in a income low tax bracket, plan to move within a couple of years, and don't want to pay for the up keep of the property. Buy if you pay income tax or anticipate an increase in earnings, plan to stay for over two years, and want an investment.