a renter. If a toilet backs up, a pipe bursts, or an appliance stops working, you don’t have to call an expensive repair person — you call your landlord or superintendent. Renters in condos, townhouses, or apartments also don’t have lawn and grounds care obligations. Relocating is easier. When renting, relocating for work is easier. Though a sudden move may require you to break your lease, you can partially offset the cost by subletting your apartment or talking with your landlord. On the other hand, selling a home takes time and effort. If you have a short timeline to sell your home, you may be forced to accept a lower price and lose some of your investment. No real estate market exposure. Home values fluctuate and can decline over time. If you’re a renter, that’s not your problem. If you’re an owner trying to sell, it is.
DISADVANTAGES OF OWNING
Maintenance. The renter’s most significant advantage might be the homeowner’s major disadvantage. While insurance might be available to protect against expenses from major catastrophes, usual maintenance items are on the homeowners’ dime. Maintenance and repair can be as simple as repainting the baseboards and as extensive and expensive as replacing a HVAC system or sewer pipe. The expense will vary from year to year; however, you can expect to pay about 1% of the value of your home annually toward these expenses. If you live in an $800,000 home for 10 years, that’s $80,000 over the period, and perhaps more if you must replace a costly, long-lived mechanical item, such as a furnace. Remember the usual homeowner’s lawn care chores, snow removal, gutter cleaning, and other regular home maintenance needs.
Upfront and closing costs. Buying a home entails numerous
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