People always face the dilemma of choosing between buying and renting a house. While rising house rents and low mortgage rates in Atlanta real estate have led many people into homeownership, others are still waiting until the market recovers. There are many aspects which must be considered when you make a final decision.
Pros and Cons of Renting a House in the Atlanta real estate market
No Maintenance Requirement
When you don’t own the house, you’re not required to go through the hassle of maintenance. If you need an electrician or the garbage disposal ruptures, all you need to do is make a call and the owner makes the repairs.
It’s More Feasible to Move
It’s far easier to change a house in Atlanta real estate than it is to sell an existing home. If you’re not well-settled into your job and you need to relocate to hunt down better opportunities, then renting a house is surely the best option.
You Can Keep Away From Owning a Risky Asset
While house prices have stabilized considerably in Atlanta real estate and they are even rising in some housing societies, these prices come with no guarantee and your house might decrease in worth over a period of time. You can avoid this risk by opting to rent a house.
Increase in Your Monthly Payment
Rents have risen in many cities in Atlanta, so you might face an increase in your monthly house rent at the end of your current lease.
You’re not Building an Equity
When you rent a house, your housing payment only gives you a place for living; it will never provide you a valuable asset which you can sell in the time of need.
No Tax Benefits
House owners can easily deduct their property taxes and mortgage interest payments from their net federal income tax. This greatly reduces the final cost of house ownership. Those who rent the house in Atlanta real estate market can’t have any deduction in their housing expenses.
Pros and Cons of Buying a House
Equity Building and Great Advantage of Tax Breaks
Usually, a house rises is value from 5% to 6% per annum in Atlanta real estate. So when you buy a house, you build a highly valuable asset for yourself. Similarly, house owners can deduct their property taxes and payments of mortgage interest from the federal income taxes. Such deductions greatly decrease the housing cost.
Stable Housing Payments
If you’re opting for a fixed-rate mortgage, your interest and principal payments will remain the same for the complete duration of the home. It’s a great economic advantage.
Settling In a Community
If you own a house, you naturally become more attached to your community as you plan to live there for years. You can develop a good rapport with your neighbors, join a house owners’ association, or you can volunteer for beneficial projects for the community. This gives you a great sense of belonging.
If you own a house, you must invest money and time to keep your house in good shape. You must have funds for expenses such as out-of-order appliances, a service contract, and a lot more.
A House Happens To Be an Illiquid Asset
If you’re in an urgent need to relocate because of a new job or any other purpose, it would be difficult to sell your house quickly for a good amount of money that you want. Overall I feel it is always better to purchase a home if you can.
Hence, the choice of buying or renting a house in Atlanta real estate depends on your personal preferences.
For further information on this subject, you can log on to platinumrealestate.com or lutherragsdale.com