Buying a home is the once in a lifetime event for a large number of people. You spend your whole life earning money and saving it for getting home to live for your family. Many things come into place while deciding to buy a home. Your alertness and knowledge about real estate and finance management are some of the essential elements you must look at.
Buying a home or renting is one of the questions every investor asks themselves before investing. Both have pros and cons, which we will discuss in this article to shed some light on.
Pros and Cons of Renting a Home
Knowing the benefits and challenges of renting a home could help you make wise decisions.
Pros of Renting
• You can live anywhere in the society. It allows you to choose your location, type of property, and amenities.
• Easy to move to a new location and explore the region. Simply speaking, you can change your home if you do not like the neighborhood. In your own home, you need help to do this.
• Limited or zero responsibility to maintain the rented property. The owner is fully liable for maintenance, repair, and any improvement in the rented house.
• Renting is comparatively cheaper than owning your house because you do not have to bear the loan amount every month. Also, the yearly maintenance of the house takes away a good amount of your hard-earned money.
• Working people who travel more often to different states or countries should prefer renting instead of buying a house. In this case, you do not have to pay the maintenance charges or be concerned about the security.
Cons of Renting
• You do not have the authority to make decisions about repairs, such as improving the home’s interior. You must get the homeowner’s permission before doing any repair or maintenance job.
• Landlord can increase the rent without any prior notice.
• Renting a home is not your asset; thus, the monthly rent amount is not building your equity.
• Not much government support who live in the rented home. A home loan gives you tax benefits while you are building your assets.
• Landlords will have pet policies for their homes. It can restrict you from having a pet in the house. So animal lovers would not have the best experience living without their pets.
• Landlord can expel you from the home anytime and put the property on sale.
• The rented home’s lease agreements give the tenant few advantages.
Pros and Cons of Buying Home
Home buying is a big financial investment. It will give you financial security and safety for your family—the decision to buy either puts you in a secure position or moves you to a financial breakdown. Therefore, you must know everything about buying a home before deciding.
Pros of buying a home
• Owning a home gives you social status. People find you in a good financial position when they know you have decent size home to secure your future.
• Family stays in the comfort when they have their own house. Owning a home and making your family stay together is a pride.
• Owning a home gives you complete freedom to upgrade the interior, redecorate your home and add new features without needing others’ permission. You cannot do this when living in a rented house.
• Investing in the home is proven as a long-term investment that nurtures the family and keeps them free from financial breakdown. You can buy and rent it to earn a monthly income.
• The homeowner receives tax benefits on the home loan. The person taking the home loan enjoys the tax benefits. They can save money and invest in other assets.
• You can set your own rules without others’ influence. You can have a pet in the home, get big appliances, renovate your home. or do anything without taking permission from a third person.
• No one can take you out of your home. You have security and complete privacy.
Cons of buying a home
• You have complete responsibility for maintaining your home. You have to bear the repair cost, which will add to your liabilities.
• Once the house is purchased, you have to stay there to ensure the safety of it. It is not a movable assist. You have to plan your life around it. People who travel more often for work must visit their homes more often to ensure their safety.
• Every homeowner has to pay the property tax to the government. Property tax goes up over time which the owner has to pay.
• There is a risk of a property price drop in the future. Thus, the amount you have spent when you purchase the property may add up to profit even after 20 years.
Conclusion
Understanding the pros and cons of renting and buying a home is crucial to ensure your decision will add value to your life. Renting and buying a home have their consequences. You should consider every aspect of it and then make the right decision.
