A Definitive Guide to Buying Versus Renting A House

Even in the best of times, real estate investments can be extremely confusing. In situations such as this, buyers are usually put with a question of either renting or buying a home. Most people cannot afford to buy a home or may afford to buy a home but have no confidence in home ownership prefer to rent.

Why Buying is a better option?

• Complete Control: One of the major advantages of purchasing a home is that you can always use the space as you wish to. With complete control, from decorating to adding an extension, the major advantage of living in a purchased property is that you are presented with a multitude of opportunity to make edits and alterations.
• Long Term Investment: Purchasing a home is generally seen as a long term investment. You can sell the property at a later date for profits. This gives you the chance to upgrade your home, as and when necessary.
• Minimized Monthly Cost: Most people purchase a home through mortgage, however, once this is paid off, there may not be a need to pay for anything else. Thus, when compared to renting, buying a home comes as a much economical option.

Disadvantages of Buying

The major disadvantage of buying a property is that it costs more. If you opt for mortgage, it is but obvious that the monthly outgoing for a mortgage would be higher than that of rent. In addition to this, there are several other costs associated with buying a property. Depending on your location, you may be required to pay extra taxes.

Why should you rent?

When compared to purchasing, renting definitely serves as an edge. With renting, you can easily relocate to another place at a short notice. You do not have to go through the tedious process of selling your home. Renting serves as a great opportunity for people that require to relocate on a regular basis.

When renting, there is less stress associated with maintenance of the place as well. For example: if there is a need for fitting, fixture, you can simply let the landlord known about it and he would fix the problem for you.

Disadvantages of renting

When you rent a home, you are bound to pay the rent to the landlord. Rather than paying for the mortgage to own the house, as you would when purchasing a property, you would simply be giving it to someone else. Rent is thus never ending and requires pre-committed payment, thus you will not be able to make any profit out of it.