The Facts Behind Ownership and Renting
Renting vs. owning a home is a topic that has been discussed in schools, commercials, and social media. The benefits of renting a home versus owning a home may vary. According to the U.S. Census Bureau, as of April 25, 2019, the homeownership rate stands at 64.2%. However, according to CityLab, rental rates as of 2016 stand at about 35%, which means more Americans would rather own their homes instead of renting them. Which would be more beneficial to you?
Renting vs. owning a home
What does it mean to rent a home? What does it mean to own a home? To rent a home, you’re accepting the obligations of distributing a monthly payment to the landlord who is responsible for the maintenance of the home. Renting creates a gateway to building up to owning a home. Therefore, owning a home means you decide how the home is taken care of. As the owner, you fulfill maintenance endeavors. Which would benefit you more? Let’s find out.
Benefits of owning vs. renting a home
InCharge states there are several benefits to owning a home instead of renting. If you own a home, you’ll have a greater chance of getting more privacy. Instead of having a landlord on your back every single day about what you can and cannot do in the home, you’ll be subjected to a more conservative living. Also, homes build equity. Equity is the value of a mortgaged property after deductions of charges against it. Therefore, if you own the home, it would be more valuable to you once it is sold. In addition, the costs to your own once you own it is more predictable instead of worrying about rent. Rent can increase or decrease based on missed payments, damages to the home, or any other reason that could cause the landlord to increase its value.
Benefits of renting a home
Renting a home has been proven to be significantly cheaper than buying a home. While buying a home can range from $10,000-$100,000’s of dollars, renting can be a few hundred to $1,000. Therefore, renting cheapens the bargain. Also, renting creates more flexibility for the tenant. The average lease spans from 6 to 12 months, which means if the tenant has to move all of a sudden, it would be easier for them to pick up where they left off. However, if you own a home, it would be more difficult to work out the details.
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Faith Smith is also a personal blogger and creator of The Music Tip. She is a sophomore at Valparaiso University with a major in Creative Writing. She received the Academy of American Poets Award for her original poem entitled, “Someday I’ll Love Faith Smith.”