Buying or Renting a Home: The 2 Sides of the Coin

The question of whether to buy or to rent applies to all sorts of things such as cars, electronics, DVDs, and even athletic equipment. However, the question is most strongly seen and applied in real estate.

“Should I buy a home? A big chunk of my paycheck goes to my rent anyway!”

“If I’ll go on buying a home, is my job stable enough to allow me to do so?”

These are just some of the many questions that baffle people these days. They find themselves at a loss which side to be on – to be a buyer or a renter – and when they go to one side, they suddenly think of more reasons why it is greener on the other side. 

The advantages of buying your own property are:

1. It is yours!  You can do whatever you want with it. You can extend your kitchen, add a garden, put up a fence, remodel your garage area and more. You can even paint your house blue if you want to. More than the creative freedom, having your own home is personally gratifying. 
2. Property buyers are eligible for tax deductions and other benefits. As a property owner, there are aspects of your sale that are tax deductible. The advertisement you create to entice buyers, land taxes, water and sewage charges and council rates to name a few have their respective tax deductions. 
3. Having your own home can improve your credit rating significantly. Owning a property naturally makes you look good on paper. As you improve your credit rating, you are also building your equity, which is good since you increase your ownership of your property in every payment you make towards your mortgage.

Renting also has its advantages. 

1. Homes for rent will not put a dent in your wallet, especially if you are just living on every paycheck  you receive. You get to live peacefully and comfortably in a home that does not dry out your pocket. Compared to a house you want to buy and a home you want to rent, you will be shelling out less money up front. For instance, between a 2-months rent plus security deposit and a hefty 50% down payment of the selling price of the home, the first is more manageable on your part. With most of your money intact, you can invest your money elsewhere. You can use it for a new car, a new kitchen appliance - whatever you choose.
2. If you have plans of relocating soon enough, renting as opposed to buying can work to your advantage most. Renting is most helpful if there are several uncertainties in your life. Uncertainties in income and what the future can bring are 2 most popular. 
3. If you are renting, you won’t be required to fix the home for damages. You don’t have to channel your handyman instincts. All you need to do is to call your landlord and have him inspect the damage. Your landlord will be in charge of your rented home's maintenance.