The topic I wanted to cover today is a fun one – the advantages and disadvantages of ownership versus renting. Starting with renting, the obvious disadvantage is that you don’t get to take advantage of home value appreciation. Currently, homes are appreciating in value by up to 7% in Omaha depending on location! Another disadvantage to renting is the fact that none of your rent payment is going toward principal. Instead, you’re actually paying someone else’s mortgage for them, and getting no equity in return.
Conversely, the advantage of renting is that if the property is actually depreciating in value, you won’t be affected negatively like the owner. If anything, that could be a positive your rental rate may drop. Additionally, if a major home appliance like the dishwasher or a system like the air conditioning goes out, you’re not on the hook for those issues; Your landlord will have to foot that bill.
One of many advantages of homeownership is that the home is yours. If you want to improve the property in any way, from expanding it to painting a mural on one of the walls, you’re obviously free to do so. You can do whatever you want with your property. From an appreciation standpoint, you get to take advantage of market shifts and reap the reward of added value. You also get to decide exactly when to sell that asset for a profit when you own a home.
Thanks for stopping by today. If you have any more questions, or you’re interesting buying or selling a home in the Omaha area, give us a call or send us an email today! We’d love to work with you.