Should you rent or buy?

Today's real estate market has had a new buyer in the last few
years - the young, single professional. Male or female, it seems
as if those who used to live a somewhat transient, short-term
renters' lifestyle until marriage, are now no longer waiting.
With more people delaying marriage until their careers take off,
single professionals are now changing from renters to buyers.



But many renters prefer to remain renters. Although buyers (and
agents) will talk your ears off about the advantages of home
ownership, renters enjoy the freedom their lifestyles provide.
>From limited maintenance to the record number of amenities
present in new properties, many renters would rather not buy.



The majority of people, whether single or married, will at some
point ask themselves, Am I ready to buy? Buying a home is a
manor step for anyone. Can there be a perfect time in one's life
to buy a home? Which is better: renting or buying? Each one has
its pros and cons.



Renters



-Don't gain any equity, but they also don't lose it. It doesn't
matter if renters make improvements to their homes or if
property values are appreciating, renters don't gain any equity.



-Don't have to put as much money up front. They usually only
have to come up with first and last month's rent and security
deposit.



-There are no tax advantages - they are enjoyed by the landlords.



-Have the assurance of fixed costs. The terms won't fluctuate
during the duration of the lease. The monthly costs remain the
same.



-Cannot personalize their homes. This includes painting walls or
hanging certain fixtures or dcor.



-Are able to simply leave for another place upon expiration of
their leases. They don't face the hassle of trying to sale the
home.



-Have much less invested in the maintenance of their homes,
inside and out. In many properties, the renters enjoy the
convenience of a full-time maintenance staff to handle appliance
and other minor repairs.



Buyers



-Often gain equity. However, they can also lose it. The market
could remain steady or decline.



-Must sell their homes before they can go to another property.



-Must put down a larger amount of money than a renter. The down
payment and closing costs can be substantial.



-Are subject to variable costs in many circumstances. Mortgage
payments, property taxes and insurance premiums can fluxuate.



-Have maintenance and repair costs to be fully responsible for.
The one exception is planned or gate communities and condominium
facilities, were outside costs are shared.



-Are free to redecorate, remodel and paint their homes as they
wish.



-Qualify for tax breaks and other tax advantages associate with
home ownership.



-Eventually own their own homes. There will come a time when
they will be free and clear of monthly payments.



As you can see, there are advantages and disadvantages to both
buying and renting. Factors such as the stability of your
career, how often you travel for business and whether not you
plan to reside in your current hometown for a long period of
time can affect your decision.

Copyright 2005 #1 Loans USA