The Pros and Cons of Renting Versus Buying

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.