Buying vs. Renting, Which is Better?

Owning a decent home is a dream come true for every person. Be it a rural or urban setup, people strife to have families and houses of their own where they can make a comfortable place to call a solace place of resting. Shalom Lamm is a BA graduate and a renowned real estate developer. He has endeavored to advise people to keep on renting until they will gather enough courage and money to own their homes.

The hard decision and question come when it is the time to choose between renting and buying homes; this is because it will affect your lifestyle and living standard; further, it also impacts your financial health. House renting mostly depends on the locality; that is, for suburban places, the rent is a bit expensive compared to the outskirts of the town. Renting in some estates can prove to be costlier due to infrastructure and security. Posh estates are well guarded and have accessible road networks, and hence the cost of buying a house or renting is very expensive.

Shalom Lamm can agree that real estate ownership is one of the booming businesses as people rush to have homes for their own. Financial institutions and other lending agencies have been at the forefront in financing homeownership plans; the government, on the other hand, gives tax breaks and deductions to mortgage holders to encourage saving towards homeownership. Real estate investment has recently gained momentum and is the town’s talk to many since it holds future wishes and dreams for many.

On the other hand, Renting has many advantages as they include flexibility and little or no responsibility at all since all risk is passed to the landlord or landlady for that matter. Flexibility comes in that one can move and settle elsewhere without much hassle. However, people see it as a sound financial decision to buy a house, even if it is through a mortgage loan rather than to rent.

In the United States of America, many people tend to focus on homeownership because of a widespread belief that the way to happiness is a homeowner. Since they want to maintain the status quo, one can spend their life time-saving in the home acquisition. Homeownership and real estate business has contributed significantly to economic growth; mortgage lenders, real estate agents, home developers, Hardware, and contractors are all employed in building industries.

Renting offers more comfort for low-income to medium-income earners. Still, in the short run, for example, they can predict their monthly expenses, there is the convenience of someone to take care of leakages and breakage, other small repairs.

Homeownership has intangible and long-term benefits that include stability and a sense of belonging to the community. Further, there is self-esteem and pride that come as a result of homeownership and tax cuts and deductions. Owned homes can be used as collateral if someone needs a facility from a financial institution. one needs to present a certified title deed or ownership document and then walk away from the loan pay at his convenience.