Housing affordability can be a big issue. Deciding whether to pursue home buying Kingston or whether to
continue renting is something that deserves careful consideration. Here are
some of the pros and cons of renting versus buying.
The Pros of
Renting:
1. Keeps Your Liquid Assets Free
When you rent, you don’t need to hand over your savings for a large down
payment. Your liquid assets are freed up so if you want to do something else
with that cash, you can. You would be able to invest it, spend it on education,
travel, or basically anything else you want.
2. You Have Less Responsibility
As a renter, you aren’t responsible for the maintenance of the building or
property. Of course, you have to keep it in reasonable condition, but if the
roof leaks or the septic needs to be pumped, you simply call the landlord to
have those things taken care of.
The Cons of
Renting:
1. Your monthly rent is not tax deductible.
Unless you have a home office, your monthly payments aren’t going toward
equity or able to be claimed as a tax deduction.
2. Your monthly rent will never cease
As a renter, your monthly rent payments will never stop. As long as you
choose to rent, you’ll be paying out that monthly sum.
The Pros of Buying:
1. You can finally settle in.
You don’t ever have to worry about moving again when you buy your own
home. Until and unless you decide to move, you can stay in your home
forever.
2. You get big tax breaks
As a homeowner, you are entitled to significant tax breaks. Your mortgage
interest is tax deductible, and you may get even more tax breaks in the future.
The Cons of Buying
1. Your savings have gone toward your down payment.
Sure, you will probably be able to build up your savings again, but in the
meantime, you’ve lost that liquidity.
2. Your house value may go down
The housing market fluctuates all the time. It’s possible that during the
time you own your home, your home’s value may go down. If you don’t plan to
sell, however, that won’t really impact you personally.
Whether you ultimately decide to rent or buy, it’s good advice to seek the
assistance of an experienced real estate agent to help you find the home of
your dreams.
