If you’re looking for a place to stay, you have two options, basically. You either rent, or your buy a place. Of course, there’s also the option of crashing in with your great aunt, but in terms of viable solutions, these are the two contenders. So what’s the difference between renting and buying, aside from the obvious fact that one makes you owner and the other one makes you a tenant? That’s what we’re here to uncover, so that you might get a better idea of what you’re getting into when you’re staying up all night checking out properties on www.propertysearch.net.
Down payments are something you’re going to have to deal with regardless of which path you go down. No matter under what form you move into a new place, you will be required to put down a down payment, which is basically a deposit.
- This is one of the most important things in terms of differences because the amount of money you have to put down is considerably different. For renting, you will put down a rather small amount of money, somewhere between 1% and 5%, maybe even higher but most of the times below 10%.
- With buying a new house, you will have to muster up downpayment funds that equal at least 20% of the property’s total cost. If that seems a little bit much, it’s because it is, so you want to make sure that you can afford the downpayment on whatever property you’re trying to rent or buy.
Permissions refer to the things that you’re able to do within the property or around the property depending on whether or not you own it. This goes without saying, but renting means that you don’t own the place.
- As a consequence, you pretty much can’t do anything in terms of home modifications without the landlord’s approval. And most of the time, landlords won’t allow you to tear down a wall or turn the balcony into a small kitchen.
- When you own the place, you can do whatever you want, as long as the modifications pass safety inspection. Buying a place up front might be more costly, but it also comes with the ability to modify anything the way you want it.
It’s not just about modifications however, as renting might also having some restrictions regarding visitors, pets and other such things. These are all obsolete when you’re the owner.
- When you own a home, a vacation goes like this: You get in your car, and you go have your vacation.
- When you rent a place, it’s something along these lines: You call the landlord, explain that you’ll be out of town, negotiate intensely, suspend your contract in some cases, hope you don’t lose your roof while you’re gone, then leave to have your vacation. You can probably tell which is better and why.