After a few days of living in my own home, I found myself confronted by repairs that my former landlord used to take care of promptly.

The best part about my old rental apartment was the super. Mr Calvin knew about everything that makes a building run efficiently. Your faucet is leaking, just call Calvin. The heat is too low in your apartment, just call Calvin.

Now in my newly bought dwelling, I no longer have Mr. Calvin to call and I miss that. Since I am not good at fixing anything, the local plumbing service outfit took care of the problem and my bill was $450.

Most people seeking to buy a home forget that it will require some maintenance, and you’re now the landlord of your own palace. As good as that sounds, it does come with some heavy financial burden.

For those seeking the best answer to the question of buying or renting real estate, my experience might help you make a wiser decision.

While you’re paying your landlord rent for the privilege of staying in your apartment, most have no clue the amount of effort that goes into running a multi-family building.

Just like a baby, you building will always need things done and some of them cannot wait for your financial situation to improve.

Despite a thorough home inspection before I bought the five bedroom home, I have spent thousands of dollars on major or minor repairs.

Just to save money, I have now enrolled in one of home depot’s home repair classes. I am learning to do tile work, and learning about grout and cutting tiles is driving me crazy.

Sometimes I wish I could have my old super Mr. Calvin back at my beck and call. Boy do I miss his efficiency and prompt attention to every little problem that affects a building.

After about nine months of purchasing my own home I am starting to get used to it, but it has not been easy. In those nine months I have spent at least over $10,000 on repairs that could not wait.

Yes your own home is your castle, but it can also become a money pit. The sad part is that I am yet to find a good tax deduction for the extra funds I spent fixing all those nasty little problems.

I found out later from my accountant, a multi family does provide the basis for deduction of all the repairs I conducted on my home.

When you have rental income you can treat it as a business, and if you lose money at the end of the year you’re allowed to deduct it from your other income.

Living in your own home do come with some benefits, like not having to listen to your neighbors loud stereo sound celebrating his recent pay raise.

If you like it quiet the apartment next door might like it noisy, and you just have to learn to live with it or move.

Lets look at the advantages and disadvantages of buying vs renting

Some of the Best Reasons to Rent

Flexibility – With just a one year lease, you’re free to explore your location and see if it’s ideal for a long term commitment.

With such flexibility you can discover and research what’s good and bad about your area, without fear of any financial loss.

If your job is not steady – If you look at your career path, and you realize you might be needing a new job once you get the required experience, renting is the best route for you.

Why make a big financial commitment while your career path has not fully developed. Buying a home at that stage might prevent you from taking a more lucrative job across town, or in another state.

Potential Job loss – You should pay close attention to how the internet would affect your industry in the future. Do you know some law briefs are now done overseas in low wage countries?

Expect that trend to increase rapidly as computers and internet speeds gets faster. Is your job secure for the next five or ten years? If you’re not sure, renting an apartment might just be the best option for you.

If You have bad credit – while it’s getting harder to qualify for a mortgage if you have bad credit, you’ll definitely find a landlord that would rent you an apartment if you have the right monthly income.

With timely rental payments, you can increase your FICO score until you’re ready to buy a house.

No Maintenance Required – This is probably one of the best reasons why you should consider renting instead of buying real estate. The need for repairs is never ending in your own home.

Unless you’re good at fixing stuffs like leaks and electrical outlets, renting is the way to go. I would urge any potential homeowner to learn about basic home repair skills before actually buying one.

Think of the utilities – Some rentals come with paid utilities, but most would leave you paying for gas and electricity.

In all cities in America, there are charges for garbage, water, sewage, taxes, ordinance fees, etc, that the landlord is responsible for.

Some of the Disadvantages of Renting

No equity – this is probably the biggest one. When you look at it closely, you’re helping someone else build a nice financial nest egg.

Your rental payment will help the landlord pay-off the mortgage loan, and you get no future benefit for doing that. It might be wise to pour your money into your own home for future increase in equity.

Rent Increase – After your lease term, the landlord can increase your rent to as much as the market would bear. Your options are truly limited in such situations.

You can either pay the new rent or move. This makes budgeting harder when you’re at the mercy of someone else financial needs.

No Tax Write-offs – Home-ownership confers some tax advantages. The yearly interest deduction when you prepare your taxes is a big one.

In a nutshell, most people renting an apartment are subsidizing the people that own real estate.

I think the law is unfair to renters, but the government wants to encourage people to buy real estate and there are financial incentives to make that happen.

Bad Neighbors – If you like it quiet at night, your jolly good renter next door might think otherwise, and play music all night long.

I once had a next door renter that screamed and yelled all night long. I soon learned to sleep with ear plugs, which was not the wisest thing to do, safety wise.

Here are Some of The Best Reasons to Buy Your Own Home

You Build Equity – if you pay rent, you’re helping someone else get rich without any future financial compensation. If you buy at the right time, your home should be worth a lot more in just a few years.

Much Easier to Borrow Money – If you ever need to borrow money for a business idea or just for an emergency, it becomes easier to get an approval if you own the building you live-in.

Bankers and loan brokers love real estate. A well positioned building can open up financial opportunities, that is otherwise closed if you rent.

Bigger tax Write-offs – Owning your real estate is a good way to get “Uncle Sam” to pick-up some of the expenses incurred.

While the biggest known deduction is interest paid, but many other tax deductions exist if you have rental units in your building.

If you work from home, you’re allowed to deduct some amount for office rent and utilities. Please consult a well qualified tax accountant before taking such deductions.

You’re the Controller of Your Castle – If you rent, your next door neighbors might not be to your liking, but you’re stuck with them. Owning your own home negates such problems.

You do not have neighbors next to your bedroom unless you choose to invite one. The peace and quiet you experience from staying in your own home is hard to describe with words.

Gone are the late night music, or couple fights to drive you insane.

Free to Alter at Will – If you feel like hanging that big statue in your living-room, you can go right ahead if you own your home.

If you rent, your lease agreement forbids most types of alterations to the apartment.

The last one I lived in was strict as to what type of paint and color you can use. Any un-approved changes to the apartment will be deducted from your rental deposit when you move.

You’re free to do as you please in your own dwelling, as long as it complies with the local housing code.

Here are the Disadvantages to Owning Your Home

You become the landlord – When you’re used to someone else doing the maintenance in your place of residence, you go through an adjustment process that can sometimes be financially painful.

As the new home-owner, you’re now responsible for every little problem that arises and some of them cannot wait for your finances to improve.

Moving is harder – Buying a home is a huge financial undertaking, as it ties you down to a specific area for many years to come.

If you fail to anticipate drastic changes in your area in the future, you might just lose all you’ve invested trying to get out. The city of Detroit is a perfect example of where not to buy real estate.

Can Become a financial pit-hole – Despite checking out all the major infrastructures before buying, repairs will still be needed in many areas of your building.

Money you spend repairing your dwelling cannot be deducted from your taxes, unless it’s a multi-family and you have rental income.

So Should You Buy or Rent?

The ultimate decision to rent or buy real estate is influenced by your lifestyle and economic power. If you’re young and still finding your way career wise, renting will be your best choice.

If you just found the love of your life and thinking of starting a family, homeownership might be just right for you. From my experience, younger folks should definitely try renting before buying real estate.

If you’re older and more seasoned in your profession, owning your own home makes more economic sense.

While you’re not building any equity with a rental, you do have the option of moving to another area for better job opportunities.

Owning you own home has a permanency to it, and should only be undertaking if you like the area, and you know it will remain livable well into the future.