Choosing whether you should rent or buy a home is a big and confusing decision. It is an extremely vital part of your life that affects your financial prospects, lifestyle, health, and even your personal goals.
Returning from the escape room Breakout yesterday, I was struck with the same dilemma and felt lost amidst my thoughts. So, I looked upon the internet to do a little research. For people who are also walking down the same path and are perpetually stuck with the same doubt, this article is here for you!
Firstly, keep in mind that your choice of whether it is better to rent or buy a place depends majorly upon your lifestyle and your present financial condition. Either option requires you to have a regular income and for you to put in adequate efforts to maintain yourself.
However, there are still many differences between buying and renting a house. So, let us talk about that.
Renting A Home
Let us first start with dispersing the myth that you are simply showering down your money every month. Keep in mind that accommodation in any way is bound to cost you a handsome sum of money. However, renting a house does necessarily mean that you are not building equity with your regular monthly payments.
Pros of renting a home
- In contrast to a house payment, your monthly rent is consequently cheaper
- Usually, your monthly rent covers your utility costs and thus allows you to make room for some additional savings!
- When you are renting, you do not have to worry about maintenance costs or paying repair bills.
- You do not have to pay money for property taxes.
- Certain amenities like fitness centers, swimming pools, and others present in the house you are renting are available free of cost for you.
- Unlike the down payment you must pay when you buy a house, renters only have to pay a security deposit (usually equal to one month’s rent).
- Your monthly rent amount remains fixed for the lease agreement period that you signed.
- Unlike the homeowner’s insurance policy, the renter’s is considerably far cheaper.
Cons of renting a home
- While you do not have to incur the maintenance costs, there might be times when you have to struggle hard with the property owner to get them done in time.
- Your rental agreement might not always be renewed, or even if it is, there might be an unforeseen increase in the rent.
- Renovation of the house cannot be done as per your desires or needs.
- Often there might be restrictions imposed upon you by the property owner.
Buying a Home
Just like renting a home, buying too has its share of pros and cons. On the bright side, you now have your ‘own’ house and are free to design or renovate it or make your home eco-friendly whenever and in whichever way that you want. Owning a house further offers you an empowering sense of stability.
Pros of buying a home
- You now exercise a greater sense of privacy than is possible with renting a house
- You can now enjoy tax deductions
- You can now build a strong credit history
- Owning a property generally comes at a fixed-rate mortgage. Thus, your costs are now easily predictable and more stable in comparison to renting a house.
- You feel proud of owning your own house, which also helps you to grow close to your neighborhood community.
- You are free to decorate and design your house in any way that you want.
- You can create equity for your future
- No one owns your land, so you are your landlord and you can even rent your home out as a vacation home.
Cons of buying a home
- It comes with a long-term financial commitment
- Every maintenance cost is solely your responsibility, from small repairs like a malfunctioning shower to bigger ones like renovating your roof.
- As you start growing an intimate bond with your community, it becomes painful to leave the house or shift if required at any time in the future.
- Mortgage payments can often be pretty high.
- Buying or building a house calls for down payments, closing costs, and even moving expenses which you must bear single-handedly.
Even though owning a house of your own has risks and added expenses, most people tend to consider it rather than renting a house, especially for their long-term goals. Buying a house provides you with a more permanent place to stay and grow old. But deciding on whether you should rent or buy a house completely rests on your shoulders. It is far more than just a choice based on your finances, for it is also an emotional decision that you partake in.
Aniya more is one of the brightest content writers at Breakout escape room. She is a passionate writer who loves to read books and explore different escape rooms. With a great work ethic, she spends most of her time researching and reading. When she is not working, she likes to relax with a cup of coffee and enjoy watching her favorite tv show or walking her dog peanut. You can find her on LinkedIn.
- Blogger and Educator by Passion | Senior Online Media & PR Strategist at ClickDo Ltd. | Contributor to many Education, Business & Lifestyle Blogs in the United Kingdom & Germany | Summer Course Student at the London School of Journalism and Course Instructor at the SeekaHost University.
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