Buying a Home vs. Renting: The Pros and Cons to Consider

buying a home

Many people will agree that only a few things are as glorious as finding a fantastic place to call home. When presented with the choice, most people, if not all, will prefer buying a home over renting. But since it’s never just a matter of choice, there are other factors to consider when trying to make the decision.

Renting a house

Renting a house is occupying a property for an agreed period while making periodical payments to the homeowner. In some cases, the homeowner is in charge of the property’s maintenance, while in other instances, the occupants are expected to do so themselves.

Reasons People Rent Houses Instead of Buying a Home

Some of the reasons people rent can be found in the pros of renting. So it would be quite safe to say that the reasons the same people don’t rent are clearly outlined under the cons.

The Pros of Renting

  1. Renting is cheaper than buying a home. The total amount one pays for renting a house yearly is even lesser, sometimes, than the down payment made when one wants to go for buying a home. What’s more? Most rented houses are also tax-free. For those that are tax-deductible, it’s cheaper than that of an owned property, and in some cases, the homeowner bears the cost, so the tenants do not have to worry about it. This is a suitable option for those with low finances.
  2. Renting a house has some flexibility attached to it. For instance, if you like to move around, renting gives you the option of paying only for the short period that you’ll be staying there and so you don’t have to stress about finding a buyer for the house or anything of that sort when it’s time for you to move.
  3. No worries about property depreciation. It’s no news that the home equity (current value of the house) declines sometimes. This is something that home buyers, especially those who might want to resell later, have to worry about. Renting has no such worries.
  4. Stable and periodic rent payment on the house.

The Cons of Renting

Some of the downsides to renting include:

–   Being in danger of unexpected changes that might have the owner evict you, either due to sale to another person or wanting to do a complete makeover of the building.

–   Facing unexpected demand from the homeowner for the payment of increased rent.

–   You might have to accept the design of the house as it is without being able to change some items to suit your taste better.

Buying a home

A person becomes capable of buying a home when they make a complete and one-time payment for property ownership or take out a mortgage. With a mortgage, they make a specific percent of the down payment and start living in the house while gradually paying off the balance.

Reasons for buying a home

There are lots of apparent reasons people go for buying a home. One of the major is: to be the proud owner of a house! Your property, where you can always return to after a hard day’s work to cool off comfortably and enjoy your personal space. Others could include:

–   To add it to one’s list of valuable assets and achievements.

–   To have a complete sense of belonging to a community (where the house is built).

The Pros of buying a home

–   You will have a permanent place of your own until you decide to sell.

–   If at a time, the value of the property is a lot higher than when you first obtained it, you could resell it and make more profit from it.

–   After the mortgage balance is paid off, one doesn’t have to worry about paying another penny for the house again.

–   You get to see it designed the way you like it.

Cons/Downsides of buying a home instead of renting

–   Monthly maintenance and other repairs that the house may need can cost as much as a tenant’s monthly rent.

–   Inability to meet up with the mortgage payments could eventually lead to a foreclosure, and you end up losing your home.

–   Finding a suitable and ready buyer if you want to move to a different environment might be challenging.

–   There might have been a depreciation of the property’s value when you’re ready; hence, you’ll be incurring more of a loss than gain.

Although it requires some serious thinking and planning to help settle either for renting or buying a home, your financial strength and lifestyle arrangements are often enough to give your plans a good headway. Always consider all your options before settling for one. Buying a home might be the big dream in the long run, but if it’s not feasible right now, then perhaps you should learn more about the side of renting.

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