is up, you also have the option of subletting to another tenant to cover your rent and offset that cost. Selling a home within a short time frame is usually much more complicated, time-consuming, and risky. 4. Potential financial loss. I’ve mentioned before that homeownership builds equity over time; however, equity doesn’t necessarily equal profit. Some homes do depreciate in value over time, putting you at risk of a loss when you sell your home. Renter advantage: As a renter, you don’t need to worry about the housing market and whether home values in your area are fluctuating, remaining stagnant, or decreasing. It’s not your problem, but for a homeowner who’s trying to sell, it is. Now that you have read and understand the main advantages and disadvantages of buying vs. renting a home, you are better equipped to make a decision. There is much to consider when deciding to buy a home. But where to start? I suggest that you start by making a pros and cons list of buying vs. renting, a list that’s unique to your own personal needs and situation. Seeing the advantages and disadvantages, the benefits and risks written down right in front of you can help you to really gauge the situation, see what the best course of action is, and what to do going forward. Many renters are nervous about the home-buying process, and because it seems too overwhelming and daunting, they choose to avoid the “risk” and stick with the familiar and keep renting. After all, choosing to purchase a home is a big decision, and a major investment, and likely to be the most significant purchase of your life. However, this doesn’t need to scare you away. All you need is to make sure you’re ready. Switching from renting to
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