Looking at houses for rent or be a first time home buyer?

Searching for a house

Whether you are searching houses for rent or a first time home buyer is a crucial decision. You need to know the pros and cons when settling at houses for rent or buying as a first time home buyer. The following sections highlight these points to help you decide.

Renting versus buying

Either settling in houses for rent or buying as a first time home buyer can be a sound choice. One way is to look at the cost of renting versus owning the same house. Compare the cost of renting against the monthly mortgage plus other costs of a target house. Another way is to compare the present housing market. Evaluate the cost to rent than to buy in your selected areas.

Renting considerations

Advantages
· Lower start-up costs
· Fixed costs in houses for rent
· Less maintenance costs
· Option to leave when your contract is up

Disadvantages
· No equity gain or lost money
· No tax advantages
· Limited access to remodeling than a first time home buyer

Buying considerations

Advantages
· Equity build up over time
· Tax advantages compared to houses for rent
· Flexibility in remodeling

Disadvantages
· Higher start-up costs as first time home buyer
· Variable equity
· Unexpected costs
· Responsibility for repair costs as oppose
· Issues when deciding to move out, eg., selling the house

Decide whether to rent or buy

Weigh all the advantages and disadvantages whether renting or buying is applicable to your financial situation. You can consult your bank and tax consultant for an advice. Then decide if it is beneficial for you to be in houses for rent or be first time home buyer.