While researching a real estate information website, I came across an article that had some nice things to consider as you are getting started in your real estate investing career. Often I am asked if there are any advantages or disadvantages of buying properties as opposed to renting properties. Now as an investor there are definitely going to be some great tax benefits. But even if you are looking to purchase a home to live in, there are some important things to consider.
Portions of this article are taken from an article I found on Yahoo Real Estate. There was no Author referenced on the page.
A home is one of the most expensive purchases most of us will ever make during our lifetime. Whether you decide to rent or buy, either choice comes with its own rewards and risks. Homeownership offers many advantages over renting including:
Advantages of Buying versus Renting
Buying:
Tax write-offs
You can upgrade your home as you see fit
Build equity in your home as value appreciates
Control of loan payment options
Pride of homeownership
While owning your own home has many benefits, there are still risks to consider:
Renting:
No tax write-off
Need permission to make any changes
Your money goes toward the landlords equity
Rent can increase periodically
You have no ownership
Disadvantages of Buying versus Renting
Buying:
You're responsible for property maintenance
Need to sell, rent or lease property in order to re-locate. May have to wait until market conditions are right
You pay for all your own utilities, property taxes and insurance
Home improvement upgrades can run into thousands of dollars
However, all things considered, homeownership is by far one of the best single investments you can make given the potential long-term benefits.
Renting:
Your landlord or manager handles general repairs
Freedom to move once your lease expires
May include utilities, property taxes, and property insurance
You're not financially responsible for improvements
These are all great things to take into consideration as you are purchasing a property. Happy House Hunting!
While researching a real estate information website, I came across an article that had some nice things to consider as you are getting started in your real estate investing career. Often I am asked if there are any advantages or disadvantages of buying properties as opposed to renting properties. Now as an investor there are definitely going to be some great tax benefits. But even if you are looking to purchase a home to live in, there are some important things to consider.
Portions of this article are taken from an article I found on Yahoo Real Estate. There was no Author referenced on the page.
A home is one of the most expensive purchases most of us will ever make during our lifetime. Whether you decide to rent or buy, either choice comes with its own rewards and risks. Homeownership offers many advantages over renting including:
Advantages of Buying versus Renting
Buying:
Tax write-offs
You can upgrade your home as you see fit
Build equity in your home as value appreciates
Control of loan payment options
Pride of homeownership
While owning your own home has many benefits, there are still risks to consider:
Renting:
No tax write-off
Need permission to make any changes
Your money goes toward the landlords equity
Rent can increase periodically
You have no ownership
Disadvantages of Buying versus Renting
Buying:
You're responsible for property maintenance
Need to sell, rent or lease property in order to re-locate. May have to wait until market conditions are right
You pay for all your own utilities, property taxes and insurance
Home improvement upgrades can run into thousands of dollars
However, all things considered, homeownership is by far one of the best single investments you can make given the potential long-term benefits.
Renting:
Your landlord or manager handles general repairs
Freedom to move once your lease expires
May include utilities, property taxes, and property insurance
You're not financially responsible for improvements
These are all great things to take into consideration as you are purchasing a property. Happy House Hunting!