When Millennials were asked: “What would stop you from going ahead and obtaining a house at this moment of your life?” The answers varied in wording, but the concept and core reasonings were the same: “I’m not sure I’m ready for the financial obligation to stay rooted in one place.”
As with everything in life, we cannot generalize all Millennials; it would be a safe bet that a very good amount of Millennials have already “rooted” themselves happily.
But for those who aren’t ready to make the commitment yet (or are in the midst of sincerely considering it), let’s break down the pros and cons of renting or buying home.
What are the Advantages & Disadvantages of Renting a Home?
Advantages of Renting a Home
That’s a fact, you can move out whenever you want within a fairly short period of time.
With a steady affordable monthly payment, you have more funds available for investing in yourself.
NO entire responsibility of home maintenance.
Disadvantages of Renting a Home
NO equity accumulation, we wouldn’t have any secure, we wouldn’t own something we can call ours.
You can really make changes or remodeling on a rented property, meaning you wouldn’t be able to paint that wall the weird color you like.
What are the Advantages & Disadvantages of Buying a Home?
Advantages of Buying a Home
You will accumulate equity; remember that Houses and lands count towards your personal wealth also when you legally own a property you gain great freedom in the use of your house and you can use this for that trip you want to do.
Provides security on the long run for a future family in case you want to have one.
Being a Homeowner allows you creative control of your property. You can alter the property, including décor changes, landscaping and renovations, to suit your needs and your style.
Disadvantages of Buying a Home
You are responsible for the upkeep of your new home, it’s known that all homeowners should budget about $3,300 annually for home maintenance.
2. No guarantees:
You are subject to a market, so you don’t really know when the value of your house will decrease or when it will go up.
3. Pay for decades:
Again, you are subject to fluctuating taxes which means that the interest rates can increase since the day you bought it.