To Buy Or Not to Buy?

By | December 4, 2015

Is it better to rent a house or buy one? Of course, it will depend on your particular situation, but there are advantages and disadvantages to both options. Being informed of the different risks and rewards will ensure that you choose the option that is best for you.

Renting offers the benefit of being better for short-term situations. Since you do not own the house, it is much easier to move on a more frequent basis. If your credit score is less than ideal, renting is a better option because you don’t have to worry about qualifying for a mortgage. Depending on the market, renting can be a cheaper alternative to buying. Upkeep is much simpler if you rent instead of buy. If something breaks, it’s not your problem; the landlord is responsible to fix it.

There are some disadvantages to renting as well though. By renting, you don’t get the same tax breaks that homeowners are able to take advantage of nor do you build equity in your rental. Landlords can always raise the rent or evict you if they choose. You may also be limited in making changes to the house you rent depending on your rent agreement.

Likewise there are some benefits for buying a house that renting does not offer. Not having to wait until the landlord gets around to fixing any problems can be an advantage. Over the long run, buying a house is usually cheaper than renting since eventually the interest portion of your mortgage payment will be less than comparable rent. There is no change in payments when you buy a house unless you have an adjustable mortgage. Because you are building equity, you have the option of borrowing against that equity should you ever have a serious emergency. When you own a home, you are free to change the landscaping or interior décor to suit your tastes. The US tax code is very pro-home ownership, with tax breaks and deductions offered for owning your own home.

While there are some serious advantages to owning your own home, there are disadvantages as well. By owning a home you are responsible for property taxes, which can be significant. You are less flexible to job opportunities, since moving to another area requires selling your home and all that entails. Fluctuations in the housing market could mean that your home may depreciate in value to the point where you owe more than the house is worth.

Whether you decide to rent or to buy, being aware of the current housing market, you unique circumstances, and the advantages to each type of situation will help you make the best decision for you. As Cicero said, “what is more agreeable than one’s home?”

The Metro House Hunters Team are leading Realtors in the Marietta Real Estate market. For more information on Marietta Foreclosures, please visit Cobb-County-Real-Estate.net.

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