Drawbacks of Renting a House
Thinking about renting a home? Consider the drawbacks of renting.For some, renting is the best option based on their current situation. But if you're ready to make the leap to homeownership, here are a few reasons why renting may not be the best long-term choice.
1. Lack of financial incentives - One of the main arguments against renting is that it doesn't build equity and isn't considered an investment. Additionally, you won't be able to take advantage of tax deductions associated with homeownership.
2. Less freedom to update your space - Whether you want new floors in your bedroom or different tile in the kitchen, such projects might have to wait until you're a homeowner.
3. Unlikely to Improve your Credit - Most landlords don't report rent to credit bureaus, meaning your positive rent payment history isn't likely to improve your credit. However, breaking your lease can hurt your credit. Collection accounts on credit reports can have a detrimental effect on your scores.
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