Should I Buy a House or Rent a House?

Once the time comes to finally get your very own place to live, the first thing that pops in your mind is whether you should buy a house, or rent one.

Renting or buying a house will depend on financial status and personal opinion of each and every person. Below are the benefits and drawbacks of renting and buying a house.

Buying a Home: The Benefits

• Buying your own home can increase your assets.
• There is no need for you to pay rent every month.
• Houses have guaranteed appreciation after a period of time.
• Buying your own house will give you the sense of ownership. After you finished paying the loans taken on your house, you will become a legal and legit homeowner.
• You are free to decorate your home exactly how you like with no need to get permission from other people.
  
  

Buying a Home: The Drawbacks

• You will need to think a lot before you decide to relocate to a new place.
• You will be responsible for every single maintenance and repair needs around your home.
• You need to pay property taxes.
• You need to spend for the stamp duty, insurance costs, broker’s free, registration fees, society charges, and more.
• Banks will not finance the entire home loan you get. They will only take care of around 80 to 90 percent of the loan requirement, and you will pay the rest of the amount.
  
  

Renting a House: The Benefits

• You don’t need to pay property tax for the place you live in.
• The landlord is the one who takes care of maintaining the house.
• if you don’t like the current location of your house, you can always change it any time you like. There is no need to contemplate a lot when relocating.
  
  

Renting a House: The Drawbacks

• Your landlord can always increase your rent any time he or she wants.
• You need to pay rent for the rest of your stay in the house but you will never be its owner.
• The landlord might send you notice to leave the house anytime if you violated any of the terms and conditions stated in the home rental agreement.
• You can never modify or change the house as you like.
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The Bottom Line
Renting or buying a house will depend on your personal opinion because these two choices have their own set of pros and cons. Reaching a decision will depend on your financial status. For someone who wants to be flexible with changes, renting a house will be the better option. Meanwhile, if you are searching for a long term investment and you want to increase your asset, your best choice is to buy a house. At the end of the day, everything depends on your current situation, and what your short term and long term goals are. Both choices are good, and it is up to you to decide which one will work best for you.

Posted by Randy Blakeslee