what are the pros and cons of renting.and wat are the pros and cons of buying?

Answer 1

Renting pros...
1. Live in the neighborhood you want.
2. Drive less to work and back.
3. Low rent

Renting cons...
1. You build no equity.
2. Money down the drain every month.
3. Any upgrades you make is money lost.
4. Noise neighbors.
5. Can be told to leave.

Buying Pros...
1. You own the place.
2. Upgrades boosts value.
3. Borrow money if you need it.
4. Live the American dream.
5. Tax benefits.
6. Leverage to buy another home.

Buying cons...
1. Higher payments.
2. Property tax and insurance.
3. Longer commutes

I'm sure there is more but it's late and my brain is tired. Good luck.

Sincerely,

Richard M. Johnston, GRI, ABR, e-Pro
RE/MAX OTB ESTATES
President's Advisory Council Member
http://www.estates.la
http://estatesla.blogspot.com/

Answer 2

Depends on on the real estate market -- the time and the place...

You build equity in a home that you own (part of the money you pay every month for your mortgage goes to pay a loan off so that you will ultimately own the home -- early on though much of the monthly payment goes to interest on the loan -- but you are also gaining the increasing value of the home and thus making money that way).

In an over-inflated market like we recently saw, it actually made more sense to rent for some people since homes were over-priced and many people bought homes that are now worth less -- i.e. you buy a $500,000 home in Jan but by summer it is only worth $400,000 -- you still owe $500,000 on the house but if you need to sell it you will have lost $100,000 -- you would have been better of renting.

In a great market (like we saw up until about 2005) you were a fool not to buy b/c the value of a property could go up 100% in just a few months -- but that would only be great if you happened to buy and sell at just the right time...

You also get tax benefits of writing off your mortgage interest if you own -- if you are not totally settled down and move a lot it could make sense to rent since buying / selling homes incur costs from real estate agents, etc.

Hope this helps!

Answer 3

Buying a property is a lot better, most of my family own there own homes the only down fall is the cost of repairs, they can be very expensive whereas renting from council all repairs are done free. I rent privately at the moment and i can't get my landlord to do anything, my carpets are dirty, and i have damp, also my kitchen cupboard's are falling of the wall. I have asked him 20 or more times to fix the problems, but he wont, so i have had to involve the environmental health, but there is a risk he could evict me, so my advice is rent rent council for now until you are 100% sure. Good luck and i hope you find this information useful. Anna

Answer 4

Renting may be less expensive monthly which could save you money in the short term, however you are throwing all that money away and will never see it again.

Buying may be a bit more costly than renting, however every dollar you spend is in some way benefiting you. You are building equity in a home which is YOUR money. YOu are showing positive mortgage history on your credit which is immensly beneficial. You get access to tax write offs, homestead exemptions, etc.. etc..

If you can pay a little bit more monthly buying benefits far outway the negatives.

Here is a calculator for you: http://www.fivestarsmortgage.com/calc-rent-vs-buy/

Answer 5

Pros of renting is...you have no worries about maintenance or repairs, no expense when something goes wrong, no taxes

The cons of renting ...you risk getting a landlord who does nothing to maintain or repair, raises your rent periodically, you're limited on what you can do like painting walls your choice of color, etc...plus renting makes it difficult to manage to save enough money to ever build up a down-payment for a house.

The pros of buying a house...you can do as you wish with it as far as painting, landscaping, building additions, remodeling, you get a FIXED RATE mortgage so that your payments don't climb out of financial reach like rent does, you build a good, solid credit rating, acquire equity with ownership, and whenever you sell your investment will have earned you money as real estate values increase.

The cons of owning a house...you are responsible for repairs and maintenance

I rented for years and it was like pouring money down a drain. I now own a house and love it!

Answer 6

Within the past week, the Wall Street Journal ran an article in the Personal Journal section discussing just this point. It made a good case for renting in many situations. I'd suggest you read the article for some well thought out details.

Answer 7

Well, i have done both and this is the way i see it - if you rent, you are paying someone else's mortgage for them. They will be making a profit too of course. However, they are responsible for the upkeep of the building.

If you choose to buy, it will be like an investment for you. IE i bought my place for £70K and in four years similar properties are selling for around £90K.
Also, having a mortgage is usualy cheaper than renting. If you make any home improvements they will benefit you in a future sale, not benefiting a landlords pocket!

Good Luck. XXX.

Answer 8

RENTING: The rent, maintenance, interest, evaluations (rise in property value), accrues to the landlord. He saves on security, gardening costs, care-taking, as you are doing that, at your own costs, for him. And, you will redeem the bond on the property but never become the owner, he does.

BUYING: All the above accrues to you, and you are the owner.
Such ownership normally serves as surety when applying for a second bond, loan at the bank, wanting to purchase some expensive items, extending credit facilities, etc.

Depending on your country, you will require a deposit when buying a house. This house will serve as surety on the amount you have to bond in order to buy it.

Buy and be a winner.

Answer 9

what's PR in the front of the pedigree? they're liberating them 6-8 weeks old. they're taking deposits to pick on the single which you want. a sturdy breeder may be figuring out on the puppy for you for the nature for the relatives. i actually loved this question that you requested. because what number of human beings can study between the strains and know even if that's a sturdy or undesirable breeder. won't be able to bypass with the help of their web content. I were given suckered in after I were given my rottie. i actually idea i got here across a sturdy breeder-no longer.

Answer 10

The advantage of renting is that the tennant is not responsible for any maintenance of the building or rooms which he/she rents. It is true that rent paid is 'dead money' - nothing to show for it over the passage of time. However, the tennant has one major advantage over the owner of a property in that he/she can move out at a moments notice, even if there is an agreement which states a period of notice. This notice period may only apply to the landlord who wants to shift a tennant out but may not apply to the tennent who wishes to move out today. Here in UK the tennant has lots of legal protections from unscrupulous landlords.

Buying - the major benefit of buying a property is that the owner [you] can look forward to making a good profit on the purchase price of the property. In some areas of UK house prises are rising so rapidly it is possible for example for a buyer to make £10,000 in a single month on properties in the £500,000 to £1million sector. Some people are taking full advantage of this fact and buying properties simply to sell them on a few short weeks later.

What disadvantages are their in property ownership? The major disadvantage right now is that central and local government see property ownership in UK as a source of revenue - tax. Every property in UK is going to be rebanded for council tax purposes over the next few months. This will probably be in an upward direction.

A very large number of Brits who purchased properties in Florida have now gotten their fingers burned because of the house price slump in the US housing market. Meanwhile back here in UK house prices continue to climb, in some areas very rapidly indeed.

Is the increasing value of a house a good investment for old age? The simple answer is that no one knows for sure. The only generation who know for certain that they are on to a winner are those who are retired now. Property owning pensioners in UK can choise to do two things, one - sell their house and downsize to a cheaper and smaller property and pocket the profit from the original property. Or they can choose to sell their property to an insurance company who will pay them a monthly income while they still remain virtual owners of said property.

On balance, property ownership far and away is the best option for those who can afford it.

If it's profit a person is looking for, take the example of my house, purchased ten years ago for £116,000. It is now valued at £480,000 and rising. Of course, if I sell [mortgage paid off] I'll reap an enormous profit, even after tax, but I'll be stuck with the problem of having to buy another house. For me, downsizing is not an option.

I strongly recommend you buy if you are looking for profit. Rent only if you wish to have the felexibility of moving at will.