2007-01-13 05:50:14 · 6 answers · asked by ginger snaps 1 in Business & Finance ➔ Renting & Real Estate
There is no real answer to this question. Look at it from both sides. If you rent a home you pay less than when you buy usually but none of that money actually goes to buying anything. But if something breaks your not responsible. Your landlord must fix it and within a certain amount of time. But if too many things break he may start to hold you responisble for it and kick you out and then you have 30 days to find a new place to live.
If you buy a home, you pay a monthly fee but that goes toward owning the home and you can paint whatever colors you like and you can rip up the carpet if you like. You can make it what you want. But if something breaks you have to fix it. If you don't have the money then you have to deal with it being broken but if it's something like your water heater then you have to fix it and make payments. You also have to have homeowners insurance and pay property tax.
2007-01-13 06:01:12 · answer #1 · answered by freakyallweeky 5 · 1⤊ 0⤋
The answer depends on certain conditions. If you are only staying in an area temporarily, less than a year for instance, renting is probably abetter option. A mortgage and rent will ultimately cost about the same for a property. The mortgage is a loan and it has to be paid or you could lose your house and end up with bad credit. If you are planning on a short stay, you would have to sell the house before moving to another area or possibly be stuck with residences in more than one place.
The advatgages of a mortgage are that the money you pay out is being invested in something you can eventually sell. Mortgage interest is also deductible for income tax purposes. When you rent, you are paying someone else's mortgage and tax payments.
2007-01-13 14:08:07 · answer #2 · answered by fangtaiyang 7 · 0⤊ 0⤋
It depends on your job, financial, and other related situations. But generally speaking, it is better to own/have a mortgage than it is to rent. If you were to live in the same area for more than a couple of years, you should "put your money to work for you" and purchase a home or condo. Even with the a slightly higher mortgage than rent payment, you're better off due to tax deductions on mortgage interest and the appreciation and equity you build in owning your own place. Renting should be viewed as a short-term housing solution -- say if you don't have enough saved for a down payment or if you plan to move soon. You should talk to a Realtor and explore your options. It doesn't cost anything to use the services of a Realtor (it's paid for in the commission by the seller). Buying a home is not as difficult as many non-owners or would be first-time buyers think it is. Just pay your bills on time and keep your credit report in good shape!
2007-01-13 14:01:23 · answer #3 · answered by Chris I 2 · 0⤊ 0⤋
Depends......i think for the most part, having the mortgage is the best, because you will own the property after the mortgage is paid, or if you sell the property, you will get whatever profit is made, there are also tax advantages to owning the property.
There are a rare few, that renting is the best for, because they aren't responsible for maintenance or repair bills.
2007-01-13 13:56:39 · answer #4 · answered by rocketgirl 3 · 0⤊ 0⤋
The tax advantages and the increasing value of real estate make buying the better choice. However, if you don't want to be responsible for repairs and upkeep and you want someone else to worry about the leaky roof, renting wins.
2007-01-13 13:59:21 · answer #5 · answered by ? 5 · 0⤊ 0⤋
That's a cute question, so I'll give you a cute answer....
Think of this....
As long as you're renting, you're just paying someone elses mortgage!
2007-01-13 15:59:59 · answer #6 · answered by abrahamrbgem 1 · 0⤊ 0⤋