There seems to be no end to this debate – it’s been on for decades and perhaps would continue in the times to come. For, there can never be a simple answer to the question – should I buy a house or rent it? It isn’t a simple decision, that’s why. There are tons of factors involved in this decision-making process; you’ve got to weigh all your options – the ones that lean in favour of both as well as those that lean against.
This is why we thought instead of giving you a clear-cut answer (which is nearly impossible, by the way; it’s too subjective), let us try and make things a bit simplified for you. Here we share the favourable and not-so-favourable points for home ownership and tenancy. Hope they’d come of use to you in making your life-changing decision.
Buying vs. Renting: Is it Really That Simple?
Unfortunately not. As much as owning a house in your name means the world to you, it doesn’t come without its set of limitations. And, where people tend to prefer renting a house for ease of convenience, they experience the accompanying drawbacks as well. So how do we know then which is better? Let’s begin by exploring the possible advantages of home ownership.
Benefits of Being a Home Owner
Your home is your investment – Perhaps the first obvious advantage that comes forth in the buying vs. renting debate is that it’s always better to have your own purchased property which you can keep safe as a long-term investment. It’s your asset of a lifetime because even if the value of the property depreciates over time, the land on which it is built may hold more value later on.
You’re entitled to enjoy tax benefits – There are lots of them that come with buying a house – deductions on mortgage interest and interest on home equity loans, property tax exemptions, as well as savings on a few closure costs when buying property.
You feel settled, finally – When you get tired of the frequent moving and packing/unpacking chores, you might want to consider buying your own and settling in for a relatively longer time.
What You Lack
It can be unaffordable – The upfront closing costs on a mortgage can be quite a significant portion of the purchase cost. Not to forget, the various fee payments, property taxes, mortgage insurance, title insurance, et al.
You can feel stuck sometimes –If home ownership can lend more stability, it can also makeyou feel stuck at times. This means that you’d want to think twice before moving homes even if you get an attractive job offer.
Higher maintenance cost – It’s your house so anything goes wrong comes on your head. Repair costs, maintenance charges, you’re the one who’d have to sweat it all out.
Is Renting Any Better?
Monthly rentals are way lower than the potential mortgage you’d need to pay for buying a house; renting is more often than not relatively affordable.
A rented place isn’t your responsibility so you aren’t obliged to cover repair costs.
You’re a free bird to move homes as and when the situation demands so renting offers you more flexibility.
You can’t make any amends to the property to your liking.
Rent is subject to increase anytime and you rarely have a say in the matter.
Buying vs. renting – it’s difficult to say which would work more in your favour. Both have their own pros and cons, perhaps it’d be wise to carefully assess your financial situation, long-term goals, and individual requirements.