Renting vs Buying: What to Know

Home ownership, or renting–both have their advantages, and their drawbacks. Determining which is right for you is no easy task. While owning a home may be right for one person, it may not be right for another. Before you find your next place to live, decide whether it makes more sense to rent, or to buy.

Renting vs Buying

Owning is Better—Here’s Why

The question remains–which is better, renting, or owning? Many people perceive home ownership as being better. Here are a few reasons why home ownership may be better.

  • Flexibility to do what you want with the property: since you own the property, you can paint or decorate however and whenever you want. You can also use your yard however you feel, without having to answer to a landlord, who might not allow fires, for example.
  • Tax benefits: Homeowners can deduct property taxes and the interest paid on their mortgage throughout the year when taxes are filed.
  • The place is yours when the mortgage is paid off: this means you own the property outright. You can choose what to do with it–keeping it as an investment property, selling it, or whatever you decide.
  • Mortgage costs do not rise: even if your home increases in value, the amount of your monthly mortgage payment will not increase. You always know what that amount will be, allowing you to plan accordingly.
  • No landlord to kick you out: landlords ultimately hold the power over tenants, and, since they own the property, they are free to do with it what they want. This means that they can decide to sell it, without providing much notice to tenants. They may or may not allow the tenant to continue living there until the property sells, which may result in having to move in a hurry. Owning a home eliminates that possibility.

Here’s Why Renting is Better

Unlike having a mortgage, renting gives occupants a fair degree of flexibility. For someone just looking to move somewhere quickly, or someone who does not want the responsibility that comes with owning a home, renting may be better. Here’s a few benefits of renting.

  • Short-term living arrangement: apartment living is better for someone not interested in a long-term living arrangement. Typically, renters need to sign a lease, which generally keeps them there for a year. Although not all rentals require this. Some allow a month-to-month lease, or no formal agreement at all.
  • No maintenance costs: when you rent, the landlord assumes responsibility for upkeep of your unit. That means, if your hot water heater goes, you do not need to come up with the money to purchase a new one. Home repairs are not your responsibility when you rent. Additionally, some landlords also take care of snow removal or mowing the lawn.
  • No real estate taxes: this is another cost that falls on the building owner or landlord. Renters do not pay taxes on their property. This can result in a significant savings throughout the year.
  • Access to amenities: living in an apartment complex may offer tenants access to a variety of amenities, such as a fitness center or in-ground pool.

Rent or Buy: Which One is Right for You?

As you read above, owning and buying both have distinctive differences, advantages, and disadvantages. You’ll want to do your homework in order to best decide which one is right for you. Whether you choose to rent or buy, there are plenty of available places you can choose from in Portland.

Weigh your options very carefully to determine whether or not you are in a better position for home ownership, or if you need to rent for awhile longer.

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