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What are the advantages and disadvantages of renting?

Home » Real Estate » Should I Rent or Buy a Home? » What are the advantages and disadvantages of renting?

When you're choosing to rent or buy a house, it's important to evaluate the pros and cons of both options.

There are many advantages to renting a house:
• Moving in is easy (you can move within a short time)
• Amenities may be available (pool, tennis courts, social/activity rooms, laundry facilities, security for apartment renters)
• The residents have few responsibilities
• Maintenance and repairs are handled by the owner
• There is no large down payment, only a security deposit
• There is no chance for large financial loss of investment
• You can look over the community and move again
• Moving-in costs are low

However, renting also has some disadvantages:
• It offers no tax deductions
• There are no potential gains from the rising property value
• You usually get less space for the money
• Changes cannot be made or are limited in scope
• Rent rises with inflation except where there are many rental units available
• You will probably have restrictions on noise level, pet ownership and/or children

Next Page: What are the advantages and disadvantages of owning a home?

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