Buying or renting a house is something that needs to be think about a dozen times. You must weigh things out before you do either one of them. For some, people don’t like buying house because it is very expensive. For others, buying house is much better because at least they own the house already or because of extremely low mortgage rates at the moment. There are lots to think about when making a decision. For those who are having difficulty choosing, this will help you on what to choose.
These are the advantages of renting a house:
You don’t have to pay for maintenance. Let the landlord do that for you. You don’t have to worry if there’s a problem with plumbing. All you have to do is to coordinate with your landlord and he will be the one to contact a plumber for you. Easy right?
You don’t have to worry if you want to move out. If you are just going to stay temporarily in one location because of work or you think that you don’t have career in your current location, then you can easily move out. You don’t have to worry about selling a house.
These are the disadvantages of renting a house:
You don’t build equity. Let’s face it, when you are renting, you will not own the property. It will never be an asset, it can never be an investment. You can’t use the house for selling purposes when you want to move out.
There’s a huge possibility that your monthly dues will increase. When you live in a city, rental fee may increase. It is almost inevitable.
You can’t touch the property without the owner’s approval. You don’t have the liberty to do a renovation or to paint the house to your own liking as it is not your property. You maybe lucky if the owner approves it, but most likely, it is next to impossible. You have to consult the owner always every time you want to make changes.
Now that we know the pros and cons of renting a house, let’s talk about the advantage first of buying a house. The following are some of the advantages:
If you can’t build equity when renting, you can when you buy the house. Buying a house is an investment. When you upgrade the house or renovate it, the value of the house also rises.
Housing payments will be on fixed rate. This happens when you choose a fixed-rate mortgage. You don’t have to think about the rising monthly dues like if you renting a house.
Some of the disadvantages are:
Maintenance is your responsibility. Since you own the house, you need to shell out money for maintenance. You may need to include it on your budget.
Selling house may take time. If you are going to relocate because of better opportunities, selling your house may take a lot of time as you need to have a buyer first who will agree with your selling price. There might be a lot of negotiations. There is a possibility that you might not sell the house at your preferred price.
Now that you are aware of the pros and cons of buying and renting a house, you decide what’s best for you.