Today's real estate market has had a new buyer in the last few years - the young, single professional. Male or female, it seems as if those who used to live a somewhat transient, short-term renters' lifestyle until marriage, are now no longer waiting. With more people delaying marriage until their careers take off, single professionals are now changing from renters to buyers.



But many renters prefer to remain renters. Although buyers (and agents) will talk your ears off about the advantages of home ownership, renters enjoy the freedom their lifestyles provide. From limited maintenance to the record number of amenities present in new properties, many renters would rather not buy.



The majority of people, whether single or married, will at some point ask themselves, "Am I ready to buy?" Buying a home is a manor step for anyone. Can there be a perfect time in one's life to buy a home? Which is better: renting or buying? Each one has its pros and cons.



Renters



-Don't gain any equity, but they also don't lose it. It doesn't matter if renters make improvements to their homes or if property values are appreciating, renters don't gain any equity.



-Don't have to put as much money up front. They usually only have to come up with first and last month's rent and security deposit.



-There are no tax advantages - they are enjoyed by the landlords.



-Have the assurance of fixed costs. The terms won't fluctuate during the duration of the lease. The monthly costs remain the same.



-Cannot personalize their homes. This includes painting walls or hanging certain fixtures or décor.



-Are able to simply leave for another place upon expiration of their leases. They don't face the hassle of trying to sale the home.



-Have much less invested in the maintenance of their homes, inside and out. In many properties, the renters enjoy the convenience of a full-time maintenance staff to handle appliance and other minor repairs.



Buyers



-Often gain equity. However, they can also lose it. The market could remain steady or decline.



-Must sell their homes before they can go to another property.



-Must put down a larger amount of money than a renter. The down payment and closing costs can be substantial.



-Are subject to variable costs in many circumstances. Mortgage payments, property taxes and insurance premiums can fluxuate.



-Have maintenance and repair costs to be fully responsible for. The one exception is planned or gate communities and condominium facilities, were outside costs are shared.



-Are free to redecorate, remodel and paint their homes as they wish.



-Qualify for tax breaks and other tax advantages associate with home ownership.



-Eventually own their own homes. There will come a time when they will be free and clear of monthly payments.



As you can see, there are advantages and disadvantages to both buying and renting. Factors such as the stability of your career, how often you travel for business and whether not you plan to reside in your current hometown for a long period of time can affect your decision.

Copyright 2005 #1 Loans USA

About the author:

Martin Lukac, represents #1 Loans USA http://www.1loansusa.com a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. For daily mortgage rates please visit http://www.RateEmpire.com