2008 Woodie Awards
To buy or rent?
Owning and renting each reaps benefits
Kate Motiva
Issue date: 11/6/06 Section: Real Estate
-
Page 1 of 1
At a certain point of a resident's life, they will consider the thought of either buying a house, or stick to renting. Many hope to one day own a home, but there are various advantages and disadvantages about buying and renting.
Up until this year, Chicago real estate has boomed dramatically and it has finally begun to lose its sizzle and return to its regular standards. Homes have been slower to sell since the end of 2005, but it may be a good time to purchase a home for a lower price.
The time it took to sell a house lengthened in 60 percent of the city neighborhoods and towns this year, according to Chicago Reader. This is a good sign for interested buyers because sellers will be more likely to stick to a firm price and not increase the price to last year's value.
For renters, there are still advantages for not buying a home yet. For example, renters do not have to pay the interest costs while a homeowner will probably pay more over the mortgage, which might even cost more than the mortgage.
The flexibility of renting can also be an attractive benefit. Renters do not have to commit to staying in their places for the rest of their lives. They can just leave when the lease is up, while the homeowner has to sell their homes, which may be harder these days because of the slow real estate. Homeowners also have to keep their houses for a couple of years to increase their equity.
Another advantage renters have is worry-free maintenance for their place. All they have to do is contact the landlord and the repair will be fixed at some time. Also, renters have a fixed fee every month so they know what they have to pay. Unlike homeowners, who have to put a larger down payment and expect that at some months there may be repairs that may cost more.
However, homeowners can also reap benefits from owning their own homes.
Unlike renters, homeowners can gain equity, which is a good thing because they can either get a loan from it or exchange it for cash if they ever sell their property.
Homes are usually valuable investments that owners can gain from if the property value increases, while renters cannot gain anything from their place.
The freedom to paint the walls any color, rehab the kitchen, mow the lawn and add new rooms can also be a big plus for homeowners. They are free to do anything to their houses because they paid for it, unlike renters.
There are also tax breaks for homeownership and buyers will sooner or later finish paying the mortgage and really own their homes.
Renting and buying has much debate for residents in Chicago, but it all depends on personal situations. If the person travels too much or does not want to be responsible for repairs, renting may the easier route. However, if you desire to call a place your own and have it gain value over the years, buying a house can be the ultimate goal.
- Page 1 of 1
Up until this year, Chicago real estate has boomed dramatically and it has finally begun to lose its sizzle and return to its regular standards. Homes have been slower to sell since the end of 2005, but it may be a good time to purchase a home for a lower price.
The time it took to sell a house lengthened in 60 percent of the city neighborhoods and towns this year, according to Chicago Reader. This is a good sign for interested buyers because sellers will be more likely to stick to a firm price and not increase the price to last year's value.
For renters, there are still advantages for not buying a home yet. For example, renters do not have to pay the interest costs while a homeowner will probably pay more over the mortgage, which might even cost more than the mortgage.
The flexibility of renting can also be an attractive benefit. Renters do not have to commit to staying in their places for the rest of their lives. They can just leave when the lease is up, while the homeowner has to sell their homes, which may be harder these days because of the slow real estate. Homeowners also have to keep their houses for a couple of years to increase their equity.
Another advantage renters have is worry-free maintenance for their place. All they have to do is contact the landlord and the repair will be fixed at some time. Also, renters have a fixed fee every month so they know what they have to pay. Unlike homeowners, who have to put a larger down payment and expect that at some months there may be repairs that may cost more.
However, homeowners can also reap benefits from owning their own homes.
Unlike renters, homeowners can gain equity, which is a good thing because they can either get a loan from it or exchange it for cash if they ever sell their property.
Homes are usually valuable investments that owners can gain from if the property value increases, while renters cannot gain anything from their place.
The freedom to paint the walls any color, rehab the kitchen, mow the lawn and add new rooms can also be a big plus for homeowners. They are free to do anything to their houses because they paid for it, unlike renters.
There are also tax breaks for homeownership and buyers will sooner or later finish paying the mortgage and really own their homes.
Renting and buying has much debate for residents in Chicago, but it all depends on personal situations. If the person travels too much or does not want to be responsible for repairs, renting may the easier route. However, if you desire to call a place your own and have it gain value over the years, buying a house can be the ultimate goal.
Be the first to comment on this story