Are you one of those people who are trying to decide whether to rent a house or buy one? This can be a difficult question to answer; especially if you need to make the decision soon. Oftentimes, this question is faced by those who are transferring to a new place. This can also be a question for soon-to-be-married or even newly-married couples.
Here’s a fact that people need to understand when it comes to home ownership. To some people, renting a home is a lifestyle choice, while for others; it is the only option available to them. Then there are those who consider buying a home a good investment.
When it comes to home ownership, both renting and buying has their advantages and disadvantages. Let’s look at the advantages and disadvantages of both:
Benefits of Renting
Renting is best suited for those people who do not have the means yet to buy a house. Renting is a lot cheaper than a mortgage, and so this is the best option for those who are not yet financially prepared to pay for costly mortgages.
One of the advantages of renting over buying a home when your income is still meager is that you’re not burdened yet with a home loan debt or mortgage. This means less worries of mounting interest charges and fees in the event you fail to pay your mortgage on time.
Renting is also flexible and is ideal for short-term commitments. So if you are a young professional and changing jobs is something that you expect to happen anytime, then renting is perfect for your lifestyle. Normally, when renting, you only need give your landlord a month’s notice, and then you can move out.
Renting is uncomplicated. For problems regarding the property being rented, it is the landlord who is responsible, not you as the renter or the tenant.
Renting is also about your chosen or preferred lifestyle. You may be able to afford a much better house when renting than you can afford if you will buy.
Drawbacks of Renting a Home
A lot of things can go wrong when you are renting, and this can cause a lot of stress on your part. For one, expect that you do not have control over the rate of the rent. So when the rate goes up, you have very limited choice: you either pay or you transfer or look for another place.
Then, there’s the possibility that you can be evicted. One of the hardest things to deal with is when landlords decide not to renew a lease, and you end up scrambling for a new place to rent. Although the landlord is obliged to inform you about this decision months before, to allow you to look for another place to stay, still it can cause undue stress on your part as a tenant.
As a tenant, you also have no control over making changes to the property you are renting. So there’s not much you can do about wanting to change things in the home you’re currently occupying.
Benefits of Buying a Home
When you own the home you are living in, you are able to avoid the troubles associated with renting: no visits from the landlord, no need to renew a lease every 12 months or so, no need to see the landlord to report things that need repairs or replacements, plus a lot of other things.
Many people, especially those who are about to reach retirement age, anticipate owning their own home so that things will be easier for them when they retire.
So, when deciding which is best for you, evaluate your personal goals, preferences, and your financial circumstances. Make an informed decision and your choice will always be the best.