Posted on 17 March 2012 by Rachel
Although housing prices have been increasing in most places in the United States the housing market in the United States is still not anywhere it used to be. So the question is should you still be renting or is it time to make the jump to home ownership before housing once again gets out of reach for many people. Here is a list of some of the pro’s and con’s of doing either.
- You own it, you can do whatever you want to your house. There is an amount of pride being able to say you own a house.
- No HOA fees. Most of us don’t like them but when you own a house you don’t have them although you do have to pay for everything yourself.
- Tax benefits.
- Historically overtime value of the home increases creating equity.
- If something breaks you have to fix it, if the hot water heater goes out you have to pay for it.
- If you aren’t planning on staying for the short term closing costs may outweigh the value increase and you may not actually make any money or have any equity.
- Not as free to get up and leave if you aren’t happy.
- If something breaks like the dishwasher, the landlord is generally responsible to fix it.
- If staying short term may actually end up saving money.
- Less work in maintenance.
- Small deposit compared to big down payment.
- Doesn’t create equity
- Not able to fix up house or remodel
- No tax advantage
There is no black and white answer to this question. It depends on your individual circumstances. If you plan on staying long term and find a great deal act on it. Look at the options but most importantly in either case don’t pay for something you can’t afford. Take time and research more about owning a home, talk to others, and see if it is right for you; renting may still be the best and most comfortable option and there is nothing wrong with either.