Buying vs renting a home
Buying vs renting a home can pose to be a dilemma. All of us have a picture of a house that we see ourselves living in.
Be it an apartment in the city, a condo in the suburbs, or a cabin amidst nature, we want to have an accommodation that best suits our desires while simultaneously being convenient for our occupation.
Residing in a property situated in a good location, with most amenities accessible to us within walking distance is the dream, isn’t it? However, it might not always be feasible to simply purchase a house; therefore, a good population is inclined towards renting houses as well.
The choice between buying vs. renting comes down to several factors such as financial position, neighborhood, duration of stay, and mobility.
And, if you are torn between the choice of buying or renting a house, then, the classic way of listing down the pros and cons of the same might aid you in your research. Here are a few for you to keep in mind:
Pros of buying a house
- Buying a house is essentially an investment for your future. However, the returns of your investment are based on where and when you buy the house, how do you wish to operate it, and is its value increasing over time? It nevertheless brings about security and can be a great way to generate a passive income stream in the form of rental income.
- Owning your home can afford you more privacy than renting one. You do not have to deal with a landlord or abide by any rules imposed by them if you buy instead of rent. You get to exercise liberty on your own terms on your property. Moreover, it provides steadiness and tranquility for you to carry on with your activities.
- As the house owner, you can have the liberty to renovate and expand the same without any intervention, of course, keeping in mind the law of the land. You’ll be free to use the house as you please and accommodate as many people and pets as you would like to.
Cons of buying a house
- Financial obligation is one of the major reasons why people shift to renting a flat rather than buying. Buying a house requires a huge investment; therefore, the planning has to be done well in advance. If you are looking forward to buying a house and you know you will be financially sound after the transaction, then you might as well consider it.
- Buying your own house instead of renting entails numerous responsibilities. It would be your duty to look after its maintenance, making the due payments, insurance, and taxes, among other things. Moreover, the added responsibility mounts up the finances as well. So, the returns from buying a house are usually received in the long run.
- If you are looking forward to buying a house, conduct thorough research with respect to every facet of and surrounding it. Get into it only if every factor is consonant with your needs and none of them pose any trouble or issue to you. Because once you make the transaction, it might not be feasible or, for that matter, easy for you to relocate anywhere else anytime soon.
Pros of renting a house
- Renting a house rather than buying can be your go-to option if buying one will pose a financial burden on you. Although, the rental value greatly depends on the location, where a similar house can have 3 times lesser rent in a remote location. It, however, won’t affect your financial health as much as buying a house would.
- Renting gives you the flexibility to switch houses according to your convenience. You can exercise mobility as you can choose to move to another location when your rent contract ends. It, therefore, could be a good option for people who get transferred often in their jobs or a person who has to make a comparatively shorter stay in a neighborhood.
- As a tenant, you usually do not have the responsibility for the upkeep of the house, unless the contrary is stated in your contract. You can choose to rent a house where you do not have to worry about maintenance and other property payments.
Cons of renting a house
Can’t make changes
- Since the ownership of the house remains with the landlord, you cannot make permanent changes in the house viz. renovation. If you choose to rent instead of buying, you will have to reside in the house as it was given to you and not harm the property in any manner.
- Your stay in the house might be interfered with by the owner, depending on their engagement with the house. Therefore, it seizes privacy from your hand as you will always have to be on your foot to welcome the landlord.
Tied by the contract
- A rental agreement is entered into as a result of the transaction and every stipulation has to be adhered to by you. Apart from the monetary payments and duration of the rent, other conditions such as a policy of no pets or even no alcohol can be present in such contracts; therefore, if you are signing up for one, make sure to adhere to it.
There can be several factors influencing your decision that are particular to the circumstances surrounding you. You will have to keep these factors in mind and see which best serves your interest. Weigh the pros and cons accordingly and see which serves your purpose and what you could sacrifice on. This could help you make an informed decision and a more comfortable stay.
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Frequently asked questions
1. Is it a waste of money to rent?
- No, renting a property is not a waste of money. You simply are not putting your money to an investment but to usage. Renting, in fact, seems to be a prudent decision in short-term stays or when the house is not a good investment in itself.
2. Is owning a house really worth it?
- Owning a house is worth it in various ways. It is an investment that can be put to use and can also bring in rental income. Depending on the location, size, and age of the property, owning a house can be a good decision.
3. Which is better? Own house or rented house?
- The decision influencing buying or renting a house is hugely dependent upon the surrounding market conditions. However, it is considered to be prudent to not buy a property if the land is not appreciating.
4. What are the disadvantages of renting a home?
- While renting can be a good option in various circumstances, it does have certain cons attached to it. For instance, there can be a certain degree of interference from the landlords and the flexibility in terms of making changes to the place can be negligible.
5. What are the benefits of renting a home?
- The benefits of renting a home can include no maintenance costs, a great deal of flexibility in terms of moving from place to place, access to various amenities, and reduced concerns about the depreciation of property value.
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