Home Renting vs. Buying
While for some people becoming a homeowner is one of the most anticipated things in life, for others, being tied to one location for life can feel like a burden. After all, everyone should be guided by their own needs and preferences when making such a responsible and expensive decision. However, if you’re simply thinking about looking for a place to live, you probably have no clue which option is right for you.
Just like you might suspect, both options have their key advantages and disadvantages you should consider beforehand. While renting a house allows you to remain mobile and frees you from maintenance and repair, among other things, it also is a less secure option as you might have to relocate on short notice if the landlord decides to sell the house.
On the other hand, investing in your own house provides you with more stability and the ability to upgrade the home to your taste but requires substantial amounts of money and a lot of paperwork.
Continue reading to explore both options in further detail and choose what suits you best.
Advantages of Renting a House
If you’re planning to relocate in a short period of time or want to travel, renting or “leasing” a house is the way to go. It’s the best option for those still looking for their place in the world; you can try living in a Brooklyn loft, Washington condo, a Texas ranch, or a lovely house with a porch and a garage in Arizona and then make an informed decision regarding your future.
Renting gives you the possibility to cancel your contract and move out as you wish. Moving service providers are ready to help with your relocation, giving you the chance to settle in your new home in a matter of days.
What’s more, not all landlords want their tenants to stay long-term, so it’s possible to move out after several months without penalties. However, this might depend on your contract, so check it carefully before making any decisions.
Low Maintenance Costs
When you rent a house, there’s usually little need to worry about maintenance costs because your landlord or a person hired by a landlord will take care of everything for you. The only maintenance work you might do as a renter is small jobs such as cleaning the yard or maintaining the pool, while larger tasks like replacing shingles or repairing broken appliances can often be handled by the landlord or their assistants. You also won’t need to worry about fixing air conditioning or heating units because they’re likely covered.
One of the reasons people rent a house is that they believe it’s less risky than buying one. This is especially true for those who don’t have enough money to afford an entire property without a loan.
While investing in real estate sounds like a great idea, it also means that you need to be ready to lose money if something goes wrong. For example, if the market is unstable and the value of your home goes down, you’re left with a lot of debt and no assets. As for renting a house, you have nothing to lose except for the monthly rate.
Disadvantages of Renting a House
One of the reasons why people prefer renting is that it requires much less paperwork than buying a house does. However, even though it takes less time and effort for you to sign a rental agreement and move into a new location, moving is expensive (both financially and emotionally) and comes with lots of hassle and stress.
No Control Over the House
Another disadvantage of renting is that you won’t have much control over it in terms of desired renovations and improvements. You’re expected to accept the property in its current state. While some tenants are fine with that, others want to repaint the master bedroom walls, replace the old bathtub with a new one, or install a new garage opener, whether by themselves or with the help of garage door service. The best thing you can do is to speak with the landlord about what improvements you’d like to make and try to reach a compromise.
Unpredictable Rent Increases
Another potential problem is rent increases which are quite common in this industry. While some contracts clearly state how much the rent will go up every year, others don’t mention any price limits, which means that you might need to pay extra fees to keep living in your home. Even if you plan to move in a couple of years, it’s still worth taking note of these changes so that you can prepare accordingly by increasing your income or looking for cheaper alternatives.
Advantages of Buying a House – Home Renting vs. Buying
While renting a house has its advantages, buying your own home is definitely the right decision if you want to plan your future and have more control over it. Ownership will give you a sense of certainty and stability; no matter what life brings your way, you’ll have a place to call home. Take look here for some of the best removal companies available.
Use of Home Equity
Another point in favor of buying a house is that it allows you to use the equity for other important things. For example, if you need money for college or to start a new business, you can take out a loan against your home and make the best possible use of your assets.
Mortgage Tax Deduction
Another advantage of purchasing a house is that you can deduct the mortgage interest from your taxes which means that the government will pay part of your expenses. This way, you can save a lot of money while still being able to purchase the home of your dreams!
Disadvantages of Buying a House – Home Renting vs. Buying
While renting a house can require quite a bit of money, buying one is always more expensive than renting one. Even if you’re smart about it and save up as much as possible, you might find yourself in trouble if something goes wrong with your finances. Since there are so many fees involved with purchasing a property, be prepared for substantial expenses to fulfill your dream.
High Down Payment
Another disadvantage of buying a house is the high down payment you should make to purchase one. While the amount varies depending on your area, keep in mind that you’ll have to put down at least 20% of the total price as a down payment. This can affect your financial situation significantly, as you won’t be able to access this money until you sell your home or refinance your mortgage.
Potential Legal Issues
Buying a house means that you need to take care of all legal issues by yourself; this means that you have to hire a realtor and/or a lawyer and deal with all important paperwork that might eat up quite a bit of time and money.
So, if you work full-time and are looking forward to living on your own without any assistance from anyone else, owning a house might not be your best choice unless you plan on hiring a professional who can deal with all the issues and paperwork for you.
The Bottom Line – Home Renting vs. Buying
When it comes to deciding whether or not to buy or rent a house, we recommend that you first look at all the costs involved with each option and then determine which suits you best based on your budget, needs, and preferences. After all, it’s impossible to find the one universal answer that would work for everyone.
However, if you’re a young professional who doesn’t want to be tied to one location for the rest of your life, renting might be the better option; on the other hand, buying a home might be more suitable for people who are looking for stability and financial security.
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