If you are considering whether renting or owning one of the many homes for sale in Minneola, Fl is right for you, there can be a lot of factors affecting your decision. While each situation is unique, there are some advantages to both scenarios that will ring true across the board. Let's take a look at the advantages that both options provide to help you better understand what is right for you and your family.
Advantages of Renting
Avoiding Property Value Losses
One of the many benefits to renting a home is the protection from property value losses. While decline in property value is rare, especially in the recent real estate markets, outside factors can contribute to a home becoming less valuable over time. By renting the home you are not tied to its market value and can look for housing elsewhere when your leasing term is up.
Avoiding Property Taxes and Homeowners Insurance
Property taxes and homeowners insurance are responsibilities of the owner of the property and don't fall on you as a renter. While you will likely have to provide a security deposit, these are often refunded at the end of your rental term. The lack of these expenses makes renting a lower upfront cost option in most situations.
Payments Stay the Same
Unless your lease states otherwise, your rent payments remain static through the term of your agreement (they can of course increase if you are looking to renew the lease). While most mortgages also stay roughly the same throughout the length of the payment term, there can be some fluctuation. The consistency of the rent payment is a benefit to those looking to stick to a budget and know their exact expenses from month to month.
Finally, avoiding the additional costs that come with owning a home is a big benefit to most renters. General maintenance, replacement of systems and appliances, and in some cases certain utilities are expenses that property owners incur that renters do not. Some of these expenses can be planned for, while others spring up at a moment's notice and require immediate attention and expense.
Advantages of Owning
Arguably the biggest benefit to homeownership is the ability to generate equity and build long term wealth. Numerous studies have shown that the average homeowner has an exponentially higher net worth than that of a renter, with most of that wealth coming from their home. For example, according to The Federal Reserve Board’s triennial Survey of Consumer Finances in 2019, the average homeowner’s net worth was $255,000, compared to the average net worth of a renter, which was $6,300.
Enjoyment and Opportunity
When you own your own home you are able to mold it into your ideal living space without the concern of returning it to its previous state or making drastic changes that you will give up when you move out. All renovations, changes, and upgrades that you do will directly benefit you now and in the future when your home value increases. Being able to use your home how you want, when you want is a freedom renters don't always enjoy.
Over the last several years there has been a shift in the real estate market that now shows owning a home is actually cheaper month to month than renting. Record low interest rates have created a situation in which homeowners spend 27.7% of their income to rent the average American home. Compare that to the 17.5% that the average homeowner spends on their mortgage for the same home, and you can see that there is a great affordability gap between the two housing options.
Lastly, homeownership can offer some lucrative incentives come tax time. You might be able to deduct the interest you pay on your mortgage or even your annual real estate taxes. Speak with a tax advisor to confirm what sorts of savings you can expect based on your situation and what other benefits are available for the many homes for sale in Minneola, Fl.
While renting a home is the best bet for many, owning a home is often the most desirable situation due to its many long term benefits. Owning real estate has long been part of the American dream and has defined the wealth of generations upon generations. With these benefits in mind, you are well on your way to making the most informed decision possible for both now and the future.