- Compare the disadvantages of renting to buying. List five things that could cause your house value to drop.
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The disadvantages of renting a property rather than buying are:
1. Less freedom - if anybody takes a property on rent then the freedom that they get is very less. They have to do everything related to the property after asking the landlord.
2. No grown in equity - Even if the value of the property increases then the tenant never gains anything.
3. No flexibility in a contract - when the landlord gives his property for rent to anybody he/she makes sure that a contract is made so it is an advantage for the landlord but a disadvantage for a tenant because if a tenant finds a property for a cheaper rent then also he/she can’t leave his existing property.
4. there is no certainty that the contract will get renewed.
Disadvantages of buying:
1. Huge investment - When buying a property one has to make a huge investment at once.
2. Blockage of money - If a person invests his/her money then there is a blockage of money and that money could have been invested somewhere else and gained a handful return.
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