The Benefits Between Buying or Renting a Home
By Ben Borhani
March 30, 2016
With so many new homebuyers or renters having entered the housing market this year, one of the most pressing questions has been the benefits of buying or renting a home. Depending on your specific needs, then one side may seem more appealing than the other, but it’s crucial you know where you stand! If you’re finding yourself stuck between the decision of whether to rent or buy a home, take a look at the list of benefits for each:
Renting a Home
1) Less Stress, and Easier Financially
One of the biggest benefits in buying or renting a home is the fact that rentals usually cause you less stress when looked at financially. With all the different costs that go into buying a home, sometimes it may be more prudent to look into the rental sector while you save for your home.
2) Easier Way to Boost Your Credit Score
The monthly payments between buying or renting a home shows that rentals can, at times, be more manageable to pay. Since you’re less stressed financially, the monthly payments can help you build up your credit score, which can also help you in the future when looking to purchase!
3) Adaptability and Flexibility
Another big upside of renting a property instead of buying can be the ability to relocate or move much easier. On most occasions, it is easier to get out of a lease agreement, and takes much more time and risk to immediately resell a home.
Buying a Home
1) A Long-Term Investment
Given you’ve done your research, buying a home can be an investment that has a huge pay-off. Depending on the location, timing, and such factors at play, the benefits of buying or renting a home can be seen in the fact that the price of the home may very well go up in the future.
2) Stability of Monthly Payments
One of the pitfalls of renting, and consequently the benefits of buying, is that the monthly payments on rentals can go up at moments notice. Entering into a mortgage on a home gives you consistent monthly payments without worry of sudden price spikes.
3) Monetary and Tax Benefits!
Perhaps one of the biggest benefits that comes with buying a home are the tax and financial advantages that could come as a result. Given the interest deduction you can make on your federal income tax, this means more money in your pocket, which could go towards the monthly home payments, and other basic needs.