“To rent or to buy, that is the question.” Many people question the decision to rent or buy daily.
There are some definite reasons you may choose to rent rather than buy. Here are just a few.
Renting a home can be an attractive option for some people. From maintenance to tax savings and the ability to move often, renting can provide an appealing alternative to settling down to a mortgage.
If you rent, you more than likely aren’t responsible for maintenance and upkeep. When the water heater breaks, your landlord calls someone to come and fix it. Depending on the arrangement, your landlord may even provide for both snow removal and lawn maintenance services.
Not having to deal with maintenance can be a big draw because you’ll save a certain amount of money and frustration.
Your landlord may pay you back for materials and labor if you do the maintenance yourself. They might even be pleased with certain upgrades like a fresh coat of paint (provided you use neutral colors).
When you own property, you’re responsible for the taxes and insurance on that property. That means you’re definitely spending a little bit extra on the monthly payment. These costs can fluctuate when your property value is reassessed. How often this happens depends on where you’re located.
The flip side to this is that you can deduct your state and local property taxes as well as mortgage interest from your federal taxes.
Freedom of Movement
If you’re the type of person who floats on the wind and sticks around in one place for short periods, it may not make sense to get a mortgage. Although renting can be more expensive, it does give you the opportunity to move with greater flexibility.
On the other hand, as you’ll see later, if you plan on sticking around, it’s more cost-effective to buy.