Advantages of Buying or Leasing a Home
If you are thinking of starting a business and wondering whether it's better to buy or lease a home, there are a few things you might want to consider before you decide.
For one, think about your capital. It can take quite a bit of money to make a down payment on a home purchase. That is not necessarily bad, unless you think you will need that same capital to start your company, buy inventory, lease space or buy required equipment to grow.
Another question you might want to ask yourself is if you plan on staying in your area for more than 5 year. If the answer is a resounding yes, and you have the capital, buying might be an excellent idea for you. If, however, you are thinking you might want to change neighborhoods in the near future, renting sounds like a better fit.
There are some advantages and disadvantages when it comes to leasing vs. buying so let's go over those here:
Leasing means a much more temporary situation. You can avoid the responsibilities of owning a property such as maintenance, appliance repairs, upgrades and so on. You also won't have to worry about things like lawn care, pool maintenance, tennis court repair and in some cases, even A/C filter and light bulb changes. If you live in a community like Vintage apartment homes as an example, everything will be taken care of for you in the rent you pay each month for your lease.
Leasing has disadvantages too. When you lease, you are not in control of your property. You will have to follow all community rules imposed by the owner. You might not be allowed to keep pets or smoke in the apartment and usually guests can spend a limited amount of time at your home. In addition, as rental rates rise, so may your lease rent. If you are looking to lease an apartment, and are in the Atlanta area, you might find more affordable rates at places such as Altana Glendale and Aventine apartments.
A home purchase can be regarded as an investment so when the market rises, as an owner, you earn that appreciation in price. You are also the king of your own castle. You can paint the interior any color you choose, have guests over for extended periods, keep pets and basically do as you please. After all, you are your own landlord.
You have to come up with capital for down payment money and that might be funds you need to start, run or grow your business. Only you know your unique situation so you have to think seriously about it. Another disadvantage of owning is when something breaks or leaks, it is your responsibility to fix it. Finally, if something changes in your life, and you find yourself wanting to move quickly, it is more difficult to do so when you own your own place. You can decide to rent it out but then you have to deal with tenants. Selling is another option and does tend to take more time and effort than giving 30 days notice and being free to move - as with leasing.
Both buying and leasing have their advantages and disadvantages. It really comes down to whether or not you have the capital, plan to stay in the area a while, are comfortable taking on home repair responsibilities and think you may need the money for other things - like starting your own business! Truly, only you can decide.