Shelter is one of the most basic of necessities. In general, people can either rent a place to live or buy property. Homeownership is often idealized, but it is not without its own pros and cons. Because financial situations vary from one person to the next, owning a home may be ideal for some while renting shelter may be the best situation for others.
Equity is a primary concern when deciding whether to rent an apartment or own an home. Homeownership builds equity. In general, the owner reaps the benefits of any improvements made on the home. If the owner renovates the kitchen, the overall value of the home increases and the owner may experience that gain when he sells the property. Renting a home, in contrast, does not build equity. The landlord reaps the benefit of any improvements and the payments towards living in the rental only go into the landlord's pocket; the renter does not own anything.
Homeownership grants a large degree of stability in a person's life, and that can be either a pro or a con. While some people enjoy the stability homeownership offers, renting an apartment affords a certain degree of freedom and flexibility. A homeowner cannot simply or easily walk away from the investment in the property; a renter, in contrast, can find a new place to live relatively easily. A person's lifestyle generally dictates the effect stability --- or the lack of it --- has on the decision to rent or own.
Like stability, upkeep can act as a double-edged sword. Homeownership requires the owner to put in all costs associated with maintaining the property. Do-it-yourselfers might enjoy the challenge of keeping up a home, while others may view it as a burden. Renting, in contrast, entitles the tenant to a safe and habitable living space. This means that the landlord must make any necessary repairs to maintain the livability of the apartment.
Loans and Other Finances
Finances can also be a determining factor. Homeownership often requires securing a mortgage and maintaining a home insurance policy. Mortgage financing may not be available to every prospective owner; finances, a job and credit score may disqualify a person from securing a loan. Additionally, property owners must pay property taxes. In contrast, renting a home does not require any formal financing and the renter does not directly pay property taxes.
Pros and Cons of Renting a Home
Many people who are weighing the options of buying versus renting a home wonder about the pros and cons of each. There...
Pros & Cons of Buying a Condo Vs. a House
Buying a home is usually a time-consuming and pricey endeavor. Due to different housing types, property features and price differences, you have...
How to Choose Between Renting an Apartment and Buying a House
Renting an apartment is trouble-free living because the landlord takes care of the integrity of the residence and its surroundings. Buying a...
Is it Cheaper to Rent an Apartment or to Buy a Condominium?
Buying a condominium is generally cheaper in the long run than renting an apartment, but sometimes only by a slim margin.
What Disqualifies People From Joining the Military?
Many young men and women who want to serve their country might not realize how high the standards are. In addition to...
Pros & Cons of Renting an Apartment
The pros of renting an apartment include not having to do any maintenance to the property and getting to use the apartment...