Advantages and disadvantages of owning VS renting a home Essay

Advantages and disadvantages of owning VS renting a home - Essay Example The advantages and disadvantages discussed in this article will enable one come up with viable decision as whether to purchase a house or rent. Let us begin with the advantages of owning a home. When one owns a home, that person is building equity. One must understand that the value of a house does not increase with time. On the contrary, its value decreases with time. However, when one owns a home they can contribute to their investment portfolio. As one clear a mortgage, he, or she builds up equity while the home value remains constant (Williams, 23). Authorities that are responsible with collecting tax have established tax relief to those who have taken mortgage. The purpose of this reduction is to aid in offsetting ones loan. In addition to that as one chooses to pay fixed-mortgage, payment in interest and the initial principal remains constant as long as the loan is outstanding. Even though payment of taxes and insurance may vary with time, one may be able to use the house as an investment. Moreover, when one purchases a house and leaves it, it is not wasted since the same house can be rented to generate income. This is also one of the best alternatives one can use to repay mortgage. It is therefore advisable to choose a house that is attractable and that is rentable, that is if one might think of renting it in the near future. Another important benefit of owning a home is that it enables one settle and lives with the community. Purchasing a home is a long-term investment. Once one has a home, he or she is committed to live with the surrounding people for a long time. As a result, one gets to understand the neighbors well and may get the opportunity to be involved in communal economical activities or even become a volunteer in a program that benefit the community for instance assisting in building of a school or public latrines among others. When one owns a home, he or