Financial loss potential.
Homeownership builds equity over time; however, equity doesn’t equate to profit. If home values in your area go down or remain stagnant during your time as a homeowner, the appraised value of your home could decrease, putting you at risk of a financial loss when you sell.
DISADVANTAGES OF RENTING
No equity building.
The monthly rent you pay goes to the landlord. It represents the fee you pay for using the property. No matter how long you live there, you gain no ownership in the property.
Home improvements go to the landlord.
Any structural and decorative home improvements that renters make belong to the building owner and must be left behind when you move to a different place. Additionally, approval for the desired major redecoration will be necessary. Ultimately, the decision to buy or rent depends on the prospective home buyer’s circumstances. There’s no denying that a home of your own is a sound financial and significant emotional investment. An investment in a home can also mean an investment in your future. There are many factors to consider when purchasing a home. Switching from renting to homeownership is challenging, but it's also an exciting and amazing decision.
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