Owning a house has been part of the American dream. Owning has many advantages, at least that has been the history of the housing market. Today, however, times and perceptions have changed. Although owning a house offers a fixed monthly note and a resale value, it also comes with maintenance costs, insurance costs and the potential that resale could be less than the purchase price. For people who will not be subject to job-required relocation and who want to work in the yard, owning a home may be a good choice.
But renting has advantages, too.
The idea of renting an apartment in Garner, NC should not be dismissed too quickly. With apartments, renting can provide some luxuries and apartment amenities that a homeowner would not have. Many apartment complexes offer swimming pools and play equipment for families that may be too costly for the average homeowner to install on his or her property.
If a long-term lease is signed, then there is some protection against rising rental rates. Maintenance on the building, the gardens, and the apartment’s appliances are provided by the landlord. Liability insurance and flood insurance are also expenses that may be transferred to the landlord and not the renter. If job relocation is a foreseeable possibility, it is easier to pull up roots with apartment living rather than owning. This is also the case if there is a noisy neighbor or the landlord does not maintain the grounds satisfactorily.
Renting does not require a high credit score. Since the financial commitment with renting is significantly less than buying, there is greater flexibility with the lease contract. In addition, home rental is now available as opposed to apartments. Homeowners who do not want to sell property are now offering it for lease. Young families are finding that it is becoming increasingly easy to obtain a lease on an existing home which offers the “yard space” which is so desired.
The one thing that renting cannot offer is the tax benefit associated with owning. This one benefit needs to be considered within the scope of the overall needs of the renter.
If owning a home is to be considered, then all aspects of owning should be examined. There is flexibility with repainting and remodeling. There is pride of ownership and a fixed monthly note with no note after the eventual paid-off mortgage. The home could increase in value (although we have all seen the opposite over the last decade) and there is the tax benefit.
There are downsides to ownership with subdivisions still being developed in areas that could possibly flood, so good flood insurance needs to be acquired. Flood insurance is not just necessary in case of a hurricane or serious rain storm but also when there is road construction or where typical drainage is blocked. Troublesome neighbors also need to be considered.