This question is no easy. In fact it all depends on your financial situation and other needs. Of course buying a property is better than renting one. But the harsh reality is that the majority of people these days, cannot purchase a home if they wanted to. Some are not even able to rent, because they do not have the means to pay the high rent that most landlords are asking for.
Deciding to buy or rent a home in Alabama is totally up to the consumer. When deciding between the two, you want to figure what works best for you now, and what will work for you in the future. For example, you may have the money down, credit and income to be qualified to purchase, but do you have money put away for a rainy day? You want to be prepared if anything were to happen with your current financial/working situation.
If you are the type of person who like to move around a lot, a purchase is not idea for you. If you are this type of person, you would be better off renting. Renting is more of a short term, less expensive alternative. Although, if at the end of your lease you decide you want to leave, you walk away with nothing but an empty pocket. As opposed to owning a home, if you are able to sell, and have not gone into default on your mortgage, and you sell at the right time, you stand the chances of walking away with a potential profit or more money than you purchased the home for. Homes gain equity over time, where rentals do not. The only thing that increases over time, is the cost of your rent.
In today’s economy, more and more people are being driven towards renting because they cannot afford or qualify to purchase a home. Unemployment rates are at an all time high, and banks just simply cannot afford to fund people for loans. Even though more and more people are being driven to rent, the rental market is still taking a beating. So many people are without jobs, that others in the family find themselves having to be to sole provider, in turn causing them to not be able to afford the rental rates. At the end it all depends on your situation. However, it also depends on the benefits you will get from renting or buying a home in Alabama.
Benefits of Buying a Home in Alabama
- You will get a $8500 tax credit for being a first time home buyer
- You can claim part of your mortgage payment on your tax return
- You can claim certain repairs and maintenance on your tax return
- If you have a home office you can claim your office space on your tax return
- You get the piece of mind of doing what ever you want in your house
- You could rent part of your house to pay your mortgage payments
Benefits of renting a home in Alabama
- In many situations you will have no house maintenance to think about
- Depending on the rental agreement you will not have to pay utilities
- You have the luxury to move when ever you want without a mortgage that could ruin your credit
- You are free from home owners rules and regulations enforce by the city
- If you rent through section 8 then the city pays most of your rent payment
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Are there other benefits of renting or buying a home that we missed. Let us hear from you
