what are the advantages and disadvantages in buying a house and renting a apt?

Barbie: what are the advantages and disadvantages in buying a house and renting a apt?

Answers and Views:

Answer by ickleshari
Buying obvioulsy means it will eventually be yours but the valuation will fluctulate, so would be good if it increased. You will have bills if anything goes wrong which can be very expensive, where renting an apartment means anything goes wrong the landlord pays. And if house prices go down it doesnt matter. I stay outskirts of edinburgh and teh house prices are extorsionate, cant get on property ladder. I rent and it suits me. I moving to a larger houe in 1 months time and all getting revamped for me. Would have cost me £10,000 plus to do it myself

Answer by Nav
The advantages of buying are:

1. They stopped making land. It becomes increasingly scarce.
2. Real Estate is tax advantaged
3. Each piece of real estate is uniqued. The location is unique, the buildings on the land are unique.
4. If you own a place and rent it out, the tenants help pay your mortgage. You may use the piece of real estate to generate some kind of income.
5. Even if you don’t rent it out, you property will likely appreciate over time, assuming the location has potential. Before you buy in your area you must ask yourself and a professional Realtor about different communities. You may buy something cheaper in a not so good area but may also have less potential for appreciation OR you may buy something in a good area that’s more expensive but it may be worth your investment.

The first step I suggest is to find a good Realtor. I suggest

In my opinion, there are only certain disadvantages to buying:

1. You have to deal with a little risk but “no risk no gain”
2. You have to worry about maintenance items and costs yourself.
3. It may not be worth buying a house, if you aren’t planning to hold onto it for at least 5 years.

Advantages to Renting are:

1. Don’t have to worry about maintenance and repair costs.
2. You may be able to negotiate a short-term lease if you don’t want to stay in it too long.
3. You don’t have hardly any financial risk (maybe your deposit)