“Is it better to rent or buy a home?” is something a lot of people ask themselves. Buying an house or a flat is one of the biggest financial decisions you’ll make, so it’s important to get it right. The answer isn’t so easy. The common wisdom for decades was to buy a house as soon as you can because it’s a great investment. That “wisdom” turned lots of people upside down in the past decade. Let’s have a look at the pros and cons to help you make a clear decision at the end of the article.
Advantages of Buying a Home
- Your monthly payments do not go to your landlord’s pocket, so you pay a loan to own your home.
- At the end of the housing loan, you will be homeowners and you will be saved from thinking about rent every month!
- If home prices go up, you can make a profit.
- You can live with your own rules without the permission of the landlord (for example, pet ownership).
- You can decorate your house or garden according to your taste and you will not have to get permission for it.
- The changes you make can increase the value of your home.
- Buying a house can sometimes be cheaper than renting.
Disadvantages of Buying a Home
- Costs such as housing loan interest, monthly payments and taxes may be more expensive than renting.
- You may have to pay for all expenses such as home maintenance and repair.
- If you have to sell your house, this long process can be a little tiring.
- Moving to a smaller, cheaper house can take a long time if your home costs increase.
- If things do not go as you expect and you have difficulty paying housing loans, you can lose your home.
Advantages of Renting a Home
- You can easily move to another home when you need it or if you have a problem.
- Renting a house is often faster than buying.
- There is no risk of losing money when your property value comes down.
- Since your landlord has to pay you for repair and refurbishment, there is no loss of money for you at this point.
- In general, the rent you pay will be cheaper than the credit, which will help you manage your budget more easily.
- You can rent a bigger house in a nicer area than you can buy.
Disadvantages of Renting a Home
- Living alone may not be an option if you have a tight budget.
- All the rent payments go to the landlord.
- If you can not buy a home, you will continue to pay rent even after your retirement.
- Your landlord can dispossess you when you are done with the contract.
- Your homeowner can set rules and restrict the changes you can make to the property.
- You have to pay a deposit and you may not be able to get the full amount when you leave the house.
- Your landlord may decide to increase your rate.
- Renovations can increase the value of the property, but it only benefits the homeowner.
What is your preference: Rent or Buy a Home?
When it comes to making the decision whether to rent or buy, there is no right or wrong answer. It is all about the life you chose to live in and what works best for your situation and your budget. Therefore, in the light of the information above, we really want to hear your preference and reasons.