When it comes to finding a new place to live, there are basically two choices. One can buy a residence outright, or one can rent one that belongs to somebody else. Each has its own advantages and drawbacks, and depending on one’s financial situation they may be different for everybody. Both aspects of both options will be outlined below.
Advantages of Renting
If you are renting a place to live, one of the big advantages is that you do not have to do maintenance work—you simply notify the landlord or management company if something needs to be done. Moving out is also easier, whereas if you own a house and want to move into a new one there is a great deal of paperwork that needs to be done on both the old and the new houses.
Drawbacks of Renting
On the other hand, a renter does not have the benefit of equity on the property. Likewise he does not receive any tax benefits on a house or apartment that he rents. Furthermore, if a renter wishes to make improvements on the property—such as a new paint job or the installment of a new refrigerator or other piece of equipment—then he must ask the permission of the landlord.
Advantages of Owning
The points discussed above as drawbacks of renting are advantages of owning a house. Here the owner does build equity and receive tax benefits and can make any improvements that suits his need. An additional plus is being able to settle in a community, where one can get to know the people in the neighborhood and become involved in their activities.