If you’re moving to Georgia, for a new job maybe or for business, one of the first things that would come to your mind is- whether to buy a home or rent one? It’s a complex question, and for many reasons. Financially, for instance, you need to think it through and take your time, because buying a house isn’t the same as buying a new pair or jeans or shoes. A house
demands a massive investment, even if you are taking a home loan.
On one hand, you could think that renting a house is economical and hassle-free. On the other hand, you could read about Atlanta 2023 housing outlook and think that buying one at least ensures your money is going into a valuable asset that you can sell down the road to reap profits and secure a comfortable retirement. To help you get out of this difficult dilemma, we need to take a closer look at the benefits of renting vs owning a house in Georgia:
Pros of Buying a Home in Georgia
The following are some of the main reasons you should buy a home instead of renting one: Real Estate Collateral Just like the stock market and commodities market, the real estate market goes through ups and downs. However, if we look at the long-term trends, it shows that real estate investments generally grow over time. Many financial experts believe that real estate investments are safe and give good returns when held for a long term. Furthermore, you can increase your home equity even if you have bought a home through a home loan. When your equity ownership in the house increases to 20%, you can leverage it to refinance your home or make home improvements.
Tax Benefits
Certain tax benefits are available to homeowners and not renters. For instance, when you purchase a home, you can deduct the mortgage interest and property income from your taxable income. This benefit is called mortgage loan interest deduction. If your home qualifies as a homestead, you can also get a reduction in the property taxes you are required to pay.
Full Control
As the owner of the house, you’re free to do whatever you want with it. You can repaint the
rooms, install new lighting fixtures, upgrade appliances, and more. You don’t have to take
permission from anyone, and not have to worry about any landlord interfering with your
private life. You can make the house truly your own and live freely.
Additional Income
An owned property can also be leveraged as a secondary source of income. You can move out of the house and then rent it on Airbnb or some other online marketplace. You can also choose to live in the house and rent out a room or an entire floor if you don’t have the need for it. Depending on your location and property’s condition, you can make decent money out of this. If you want a ballpark figure, you can also use a Airbnb calculator. There are many of these on the Internet.
-
Pros of Renting a Home in Georgia
There are many benefits of renting a house also. These are:
-
Easy to move
You don’t have to make a long-term commitment when you rent a home. You have to live in the property only till the lease expires. When that takes place, you’re free to move to a new property or a new city entirely. So, it’s a lot easier to move into a rented property compared to a purchased property.
-
No maintenance hassles
When you live in a rental home, you don’t have to bear the responsibility of maintenance and repairs for the most part. It’s your landlord who has to take care of all this. You don’t have to apply for new utility connections with the government, nor do you need to worry about everything being up to code. You just live in the house and go about your life.
-
Small financial burden
If you’re on a limited budget, then renting a house is far easier than buying a home. This is because, to move into a rented home, you just need to make a refundable security deposit, and pay broker’s fees (although you can save this too by doing house hunting yourself and contacting the landlord directly). You may have to buy renters insurance though, which is generally good for you anyway. Renters insurance is not required by law in Georgia, but your landlord might specificaly require it.
-
No concerns of depreciating property value
With fully-owned property, you have to deal with real estate market uncertainties. It’s a real possibility that the house you buy loses its value over time and you have to sell it at a loss. Since a rented home is not an investment, you don’t need to worry about crashing the real estate market or return on your payments.
-
Easy to move around
As mentioned earlier, a purchased home is a serious commitment. You can’t expect to move again after you move into the property. So, it can be really difficult if after moving you don’t like the place, maybe because of unruly neighbors, local crime rates, traffic or any other reason. On the other hand, if you live in a rented home, you can easily and frequently change your location as per your needs.
Bottom Line
Georgia is one of the most beautiful US states where opportunities and the nicest people galore. How can you not love the southern hospitality and southern cuisine here? That said, your location will play a big role in your overall experience. So, compare all your options based on your budget and requirements, and apply the information we’ve shared above. It will surely make the process a lot easier. Good luck!