The most pervasive misconception about renting is that you waste money every month. That is untrue. You must remember that having a place to reside always involves some sort of financial outlay. Sure, paying rent on a regular basis doesn’t help you develop equity, but not all the expenses associated with homeownership are related to doing so either. Homeownership does provide both tangible and intangible advantages. You not only have your own home and can make decisions about the look and design of the space, but you also gain stability and pride of ownership.
When you rent, you know exactly how much your monthly housing costs. This amount is specified in your lease so that you can budget accordingly. In some cases, your landlord may include other costs, such as utilities, storage, and homeowner association (HOA) fees if you live in a condominium.
Even if your mortgage payment is lower than your rent, the overall cost of homeownership is higher than renting. Here are some expenses that you will incur as a homeowner that you will not have to bear as a renter: Taxes on real estate, Trash collection (some landlords require renters to pay this), Service for water and sewage (some landlords require renters to pay this), Pest management, Tree pruning, Insurance for homeowners, Pool maintenance (if you have one), Lender-mandated flood insurance (in some areas), Insurance against earthquakes (in some areas).
If you rent, you can leave when your lease expires. But it also means that you can be forced to relocate quickly if your landlord decides to sell the land or rent to someone else. Less dramatically, they could simply raise the rent beyond your means. You also have to keep in mind that since real estate is an illiquid asset, changing your mind about where you live can be very expensive. It could be difficult for you to sell when you desire. Even if you manage to, you might not be able to buy it for the price you desire, particularly if the property market is weak. There are significant transaction costs involved with selling your house, even if it’s price is going up.
To sum everything up, there are numerous advantages and disadvantages to both buying and selling properties. Whichever path you decide to choose, Saveljic&Chulu real estate agency will be there to support your decision.