Nowadays people start to rent an apartment or house as early as teenage age. Parents now let their children go to live their own life sooner than before. Young adults do not want to hare living space with their relatives because of possible inconveniences. For example, it is hard to keep relationship with a person when you live in parents’ house and should share everything with them and other siblings (if any). Only few of those young people can afford to purchase property.
The best and cheapest option for living is to purchase a house because investing in real estate might be even profitable if you would be lucky enough to make some markup by selling it for higher price compare to what it was bought for. People usually are ready for such a big decision in their lives when they settle down, build good credit history, and set aside some money for the down payment. Usually individuals can rarely afford to buy a house for cash. That’s why the big challenge might be to qualify to get a loan. The other thing that might prevent you from acquiring the property is huge down payment. The higher the cost of the home the bigger the amount you need to come up with. On one hand, buying home is almost like renting it. Home buyers need to pay for property with only difference that they do it not to the landlord but to the bank. On the other hand, once you pay off the mortgage your payments will stop some day whereas rental expenses will never end.
Rent a house
If a person cannot afford to buy his dwelling then rent is pretty much the only choice he has. Usually a landlord will ask you to sign the lease agreement for few months or a year. You will need to pay initially for the first and final months of rent. This last month payment is called deposit which will hopefully be reimbursed to you at the end of the lease term. The owner might keep your money in case of some damages of your fault or if you won’t keep what the contract stipulates.
The good thing about rental property is that when you rent you are not on your own with your problems. If something happens, you can always call to the owner and ask to fix that if necessary. Rental fees might not go up if you live there for several years or your landlord may raise charges annually. Usually it depends on who you are dealing with.
Tax benefit of buying home vs renting it
If you would buy a house you could deduct mortgage interest income and real estate taxes for the property. On the other hand, rent expenses usually cannot be deducted on your tax return unless they are for business use.
What is better to use for business purposes rented or owned property
If you use part of your home for business, commonly it doesn’t really matter whether you rent it or own it. The certain portion of your expenses can be deducted on your tax return as long as you can keep all the receipts that can support those expenditures.