Pros and cons of Renting an Apartment Vs. Owning a Home

A Lifelong goal of many citizens is to achieve the homeownership. While many people want to buy their own home, there are some people who don’t want to buy the home they would like to live in renting homes.

Since many years, families are either needed to build their own homes or rent a home from someone else. While both renting and buying homes or apartment have their own financial advantage, renting apartment does appear to have an edge when the economy is poor.

There are many financial benefits when you rent or buy your own house.  Here are some advantages and disadvantages of renting and buying a house for rent.

Pros of Renting

• No Responsibility for Maintenance or Repairs

As a tenant, you are not responsible for repair or home maintenance cost. If any of appliances is out of order, you don’t have to call the repair person- you just have to call your landlord they will repair all the appliances.

• Relocating Is Easier.

When you live on a rent then relocating is easier and potentially less costly. Therefore renter easily changes jobs often typically rent until their professional lives stabilize.

Cons of Renting

• No Federal Tax Benefits

While a landlord can deduct property taxes and income tax returns, tenant is not eligible for any housing related tax credit or deduction.

• Limited Housing Security

Many landlords are assigning a lease agreement. Some landlord gives the housing security to the tenant and some will not give any kind of security, these securities are written in the agreement.

Pros of Buying

• Building Equity Over Time

Owning a house offers the long-term benefits of security, equity and potential growth in personal wealth.

• Federal Tax Deductions

Itemizing your federal earnings taxes can deduct your own home taxes and the interest paid on your mortgage, reducing your total income tax burden. This certainly advantages those in bigger tax brackets.

• Potential for Rental Income

Although initially, you don’t think of your home as an investment property, which you can turn it right into a source of income. This can partly or completely offset your tax and insurance payments on it.

Cons of Buying

• Responsibility for Maintenance and Repairs

As a landlord, you are responsible for covering all the cost of maintenance and repairs. Some landlords also take a responsibility of security.

• Potential for Financial Loss

Some property rates had decreased after some time of purchasing a house. So these landlords have to face financial losses.

Ultimately, the decision whether to rent or to own a property is not just financial – it’s also emotional. Still, if you are looking to rent your home or apartment? Visit CIRCL a Toronto-based rental apartment Company who offer services for all your rental management needs and alerts about similar rental properties.