Lease versus Buy-

When considering where to live, you have two basic choices: you can lease (rent) or you can buy. This is a big decision as the purchase of a home is the largest purchase most of us make in our lives. There are advantages and disadvantages to both leasing and owning, what you choose depends on your situation, financial circumstances and lifestyle.

Here are some of the advantages and disadvantages to leasing versus buying.

Leasing or Renting

Leasing a home or apartment provides the flexibility of not being stuck with the particular dwelling for the long haul. There are many different rental situations, from condos, apartments, and even larger homes. When one rents a home, they are essentially leasing it for a given period of time. One can chose to stay in the rental for as long as they please, but they are not tied down to their rental beyond the terms of their rental agreement.

One advantage of leasing is that certain elements of maintenance and repair come as a part of the rent paid. Most rental units provide basic upkeep of the unit and are responsible for the fixing of anything that may go wrong or get broken. Many rental owners also provide pest management as well as basic lawn care. There are also certain amenities, such as pools or fitness facilities, that many rentals have on offer.

The major disadvantage of a lease is that you are not building equity in the unit as you would if you were paying a mortgage. You are also at the whim of the landlord as they can make changes, increase rent and even decide to close down. Yes, they must give warning, but these things don’t happen in a home one owns. While one gets a lot more flexibility when renting, they also have far less control than a homeowner does.

Buying

When you plan on staying somewhere for the long-term, buying a home is often a great choice. When you purchase your own home, you are building credit and equity into an actual tangible product, their home. Owning your own home gives you the ability to add whatever features you may desire and personalize the home to meet your exact taste and needs. The monthly check you send out goes towards the eventual complete ownership of the home.

The biggest downfall of owning one’s own home is that you are solely responsible for the maintenance, repair and upkeep of the structure. This means, if something goes wrong, it is up to you as the homeowner to take care of it. Owning your own home also makes it more difficult to move, should the need arise. It is much harder to sell a home, especially in today’s market, than it is to wait out the short duration of most rental leases.

Depending on your particular situation and needs, renting or buying may be a more attractive option. Both have their perks and both also have their downfalls. There are conveniences that come along with renting versus things that you are personally responsible for when you own your home. On the flip side, when you own your own home, you have the freedom to do with your property as you wish. Many rentals do not allow for many personalizations to the unit. Keeping these elements in mind will help make the decision of whether to rent or buy far simpler.

See Also:

• Is Bernanke Stuck in a Housing Time Warp?
• Housing Trends- Where are the Home Buyers?
• 30 Year Fixed Rate Mortgages, Nope Not at 3.25%!
• Housing Prices and Inflation
• Real Mortgage Rates
• Home Prices vs. Home Values
• Is a House Ever a Good Investment?
• Foreclosure Time Lengthens- What To Do?
• Rent to Own Lease Programs
• Rent Vs Own | Your Family Finances

This article was written on behalf of Italy Accom, a site which features various Rome Apartments right in the center of this historic city.

Photo Credits: By Jason Riedy