Rent vs Buy: What is the Best Choice?
We have all heard of the rent vs buy debate. There are lots of perks of renting a house/apartment, albeit owning a house is a dream of millions of people. While some people have to rent due to financial problems, others do it consciously, believing owning a house is a headache.
Read on to learn all of the perks and drawbacks of renting vs buying a house/apartment before you make your final choice.
The pros and cons of buying your own house/apartment
If you’re thinking of purchasing your own house/apartment, it’s crucial that you consider all the pros and cons. That’s an incredibly serious investment, so check out the following:
- You have a full control of your property. You can change whatever you want and you can do a complete home makeover without asking for anyone else’s permission.
- You have the long-term benefits of equity, security, and confidence about tomorrow. No one is going to turn you out of the house/apartment.
- You can earn great money by selling your house over time.
- When you purchase your own house/apartment, it turns into your own legal property that gives you tons of freedom and little to no restrictions that are usually created by a landlord.
- You can rent out your house/apartment or a part of it and earn pretty cash monthly.
- You can improve your credit score by making sure repayments are always made on time.
- The regular house/apartment maintenance and bond repayments are just a couple of the huge financial responsibilities that come with homeownership.
- You’ll need to cover some additional costs, such as taxes, rates, and certain home repairs.
- You have the risk of losing your cash and selling your house/apartment for cheap due to economic factors.
- You become dependent on your property. You can’t just move to another city and abandon your house/apartment.
The pros and cons of renting your own house/apartment
The majority of people fails to see the perks of renting a house/apartment and pay more attention to the cons. There are both advantages and disadvantages of renting and they are:
- You can live in the country/state/city/neighborhood that you can’t afford to buy a house in.
- You have plenty of flexibility and aren’t dependent on the house/apartment. You can move out anytime, without worrying about selling your property.
- You don’t have to put extra funds into a home loan.
- You have less financial responsibilities and all property problems are solved by a homeowner.
- You have no security and confidence about tomorrow. There’s no guarantee that a homeowner will renew a lease once it expires.
- You have to stick to the limitations and rules created by a homeowner. You’ll need to receive permission before making any changes in the house/apartment.
- You have no return on investment or wealth creation because you aren’t a homeowner.
- You can’t control annual rental fluctuations that are typically affected by the country’s inflation.
Rent vs Buy: What Option is Better for You Final Thoughts
Now that you know all the pros and cons of renting and buying a house/apartment, it’s up to you what you choose. Take this information and evaluate what the best option for you is.