Is renting or buying a house more beneficial to you? Do you know the nitty-gritty that involves this tedious and major decision? Heres what you need to know before you make a choice.
𝗜𝘀 𝗶𝘁 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝗹𝘆 𝗺𝗼𝗿𝗲 𝗱𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝘁𝗼 𝗿𝗲𝗻𝘁 𝗼𝗿 𝗼𝘄𝗻?
You might think if you can afford it, why not buy a house? However, despite contrary belief, homeownership tends to be higher in cost compared to renting due to expenses you normally don’t have to pay as a renter. These expenses include repairs, maintenance and basics like water and sewer services.
Renting comes with minimal to no maintenance fees as almost all the costs are covered by the landlord. This, however, comes with the sly consequence of losing the opportunity of enjoying equity gains if the value of your home increases.
One of the biggest financial set back with homeownership is the mortgage interest which might take up a significant amount in your monthly payments in the early years of a long-term mortgage. Either way, it all pans out in the long run as you are still putting money into an asset. However, when you rent, you are just paying the owner.
𝗪𝗼𝘂𝗹𝗱 𝘆𝗼𝘂 𝗹𝗶𝗸𝗲 𝘁𝗼 𝘀𝗲𝘁𝘁𝗹𝗲 𝗱𝗼𝘄𝗻?
If you like freedom and mobility, renting might be the way to go. Renting gives you the intrinsic benefit of flexibility and short term commitment. You have the option of moving each time your lease is up. However, that adjustability means you might have to move out suddenly if the landlord decides to sell or increase the rent.
If your long term goal is to plant your roots in the desired housing area, home-owning might be for you. Owning a home gives you a sense of stability and belongingness to a community. It can give you greater privacy and pride as an owner.
𝗗𝗼 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗵𝗮𝘃𝗲 𝗮 𝗣𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗶𝗻𝘀𝗽𝗶𝗿𝗲𝗱 𝗵𝗼𝗺𝗲?
Would you like to have those custom kitchen cabinets you have been dreaming of for years? Home owning allows you all the creative possibilities you could ever want. There are no restrictions as to whether you could drill a hole and hang that painting you love so dearly. Buying is the route for you if creative freedom is important to you. Meanwhile, with renting, there is so little freedom as to what you can do to make it your home. It is one of the many reasons why buying is more attractive than renting.
Both renting and home-owning have their benefits. Ultimately, if you need a more permanent place to settle down and have more creative freedom on your vision as a home, home-owning is the way to go. If mobility is your utmost priority, rent away! Whichever you choose, it isn’t just about money. Eventually, the decision depends on comfort and the vision you have for your life.