The age-old question of “Buying vs. Renting” a home is one that everyone faces at some point in their life. Even those who have always rented and love apartment living have likely pondered whether it would be better to purchase a home or keep on renting. So, which option is the right one? Is it more advantageous to buy a home or to continue renting?
When it comes to making this decision, there are two key factors to consider, which are based on your financial goals.
How long do you intend to stay in one place?
It is much easier to decide if you are clear about your criteria. For example, if you want to stay in one place for a long time, say 10-20 years, it makes sense to have your own house if you can afford it. However, renting is preferable if your job needs you to relocate frequently. Renting also allows you to enjoy low-cost housing, which frees up your money for investment and wealth growth.
Freedom vs. Commitment
Renting a residence allows you to move around freely. However, if you do not want to move, living in a leased house may be difficult if you are requested to do so. Rent continues to rise, and if your income does not increase in tandem, you will be compelled to relocate to the outskirts of town in search of a cheaper apartment.
Buying a house, on the other hand, provides stability. Your Equated monthly installments (EMIs) may be far greater than your rent, but they will be constant yearly. As a result, renting is simple now but becomes more difficult later in life, whereas owning will shock your finances at first but strengthen with time as you develop equity in your house.
Also Read: Buying A Property? 5 Tips To Follow To Ensure Best Value
What Are the Advantages and Disadvantages of Owning vs. Renting?
The benefits of owning a home are generally:
- More room.
- More freedom to do whatever you want, without fear of repercussions from a neighbor or landlord, such as remodeling the kitchen.
- It is a financial commitment. You will not profit from your rental payments. You most likely will be on those house payments in a few years.
The disadvantages of owning a home are generally:
- A lot of upkeep expenditures.
- Taxes on real estate.
- You will gather items if you move into a home unless you keep it lightly furnished or move into a relatively small property. As a result, relocation becomes more difficult.
The benefits and drawbacks of apartment living are often inverted. The benefits of renting include not having to pay maintenance fees, having your landlord pay property taxes, and making moving out significantly easier than moving out of a house.
Final Verdict
Ownership of a house may be advantageous to homeowners in the long term owing to the amount of equity they accumulate in their property. Renters have little to show after years of rent payments. However, renting may be a preferable alternative for individuals who wish to escape the inconveniences of homeownership, such as maintenance bills and property taxes. Of course, it also depends on a person’s lifestyle and financial status.
Also Read: A Guide To Renting Your Properties Effectively & Quickly
