Buying versus Renting

Buying Maryland Real Estate Vs. Renting

Usually, if you can come up with a down payment then buying Maryland real estate is your
best option. However, this may not apply to everyone. Consider the
following:

Renters …

  • Neither gain equity, nor lose it. Despite any improvements
    renters make to their homes — and regardless of any outside influences
    that would cause the property value to increase — renters will
    never gain equity.
  • Renters put little money up front.
  • Reap no tax advantages. Any and all tax breaks and other tax-associated
    advantages are enjoyed by landlords.
  • Are often restricted from making modifications such as painting
    walls (some landlords will allow renters to paint their walls only
    if they paint them white again before they vacate their homes).
  • Can merely pack up and leave upon the expiration of their leases.
    They don’t face the hassle of finding a buyer and waiting until
    a sale takes place.
  • Face much less work in maintaining their homes, inside and out.
    In many multifamily properties, they enjoy the convenience of a
    full-time maintenance staff to handle appliance repairs and other
    minor repairs.
  • Maryland Real Estate Buyers …

  • Often gain equity. However, they can also lose it. Their equity
    can also remain static.
  • Must go through the process of selling their homes and finding
    a buyer, either with a Realtor’s help or not, if they elect to move
    out of their homes.
  • Must put down a greater amount of money (a substantial down payment)
    than a renter, who merely pays a security deposit and first/last
    month’s rent.
  • Are subject to variable costs in the absence of documentation
    that keeps costs fixed.
  • Must either perform maintenance/repairs on their own or using
    the services of a professional whom they hire and pay themselves.
    Buyers are fully responsible for any and all repairs.
  • Are free to paint, redecorate and remodel their homes as often
    as they wish.
  • Enjoy the tax breaks and other tax advantages associated with
    homeownership.
  • Build equity regardless of whether the value of their homes increases
    over time.
  • Eventually own their homes and are free of a monthly mortgage
    payment.
  • After reviewing this comparison, you may feel that neither buying
    nor renting Maryland real estate listings is the “perfect” choice. We should then consider
    your lifestyle — including such factors as the stability of your
    career, how often you travel for business and whether or not you plan
    to reside in your current hometown for a long period of time — either
    choice has plenty of valid advantages. Here is a calculator that will
    help you crunch the numbers in determining whether you’re better
    prepared to rent or buy.