What is Better Renting or Buying A House?
There are a lot of important decisions that we have to make in our life and the decision of whether to buy a house or not is certainly the most important of them. Purchasing your home is probably one of the biggest fruits of your life. This is with other memorable life events, such as starting your first job, getting married and having your first child. No one can guess the importance of such a move. And yet many people enter into the process completely unprepared and ill-informed, with the result that their purchase is disappointing and ultimately doesn’t suit them. Some of the key benefits of ownership are the monthly expenses with mortgages, the possibility of collection of equities over time, usually bigger space, a rental, property personal property, and tax benefits etc. So in this article we will clarify what is better renting or buying a house.
Some disadvantages are lack of mobility, initial costs can be substantial (down payment, closing, title, loan fees, insurance, escrow, etc.), maintenance, payments usually cost more and the cost of future sales. Now let’s proceed further to understand which is better renting or buying a house.
What is Better Renting or Buying A House? Pros and Cons:
Pros of owning your own home
You might ask, ‘Why shouldn’t I just keep on renting? It’s easier, there’s less responsibility and I won’t need to worry about endless maintenance.’ It might sound less taxing to let a property, but I think there are many pluses to owing your own home:
- You can take on the maintenance Instead of waiting for a landlord to come and sort out the dry rot or the leaky guttering, you can get on with the work yourself. Equally, you can control how much you pay, instead of having to put up with eye-watering high bills that are difficult to question from a landlord.
- Once you have completed all the payments on your home, you will be rewarded with a property which is all yours. If you pay everything off before the leisure time, you can live rent- and mortgage-free – a huge boon when you’re on a limited income later in life.
Before taking big steps to become your own homeowner, you should have enough confidence with your income and the ability to pay your mortgage. Do not deny that a home is your own commitment and responsibility you can not ignore. Here are some of the biggest hassles of being a homeowner:
Why not to buy?
Cons of owning your own home:
You have to pay for any maintenance yourself This includes having to regularly book in plumbers, heating engineers, electricians and builders to carry out set tasks, such as annual checks on the boiler, clearing out guttering and making sure the electrics are up to scratch.
You could fall into negative equity This is when your home is worth less than it was when you bought it, or for the sum you borrowed. In a downturn, property prices can drop and you can find it hard to move on. You might not be able to sell your home for a large enough sum to clear your debts so you will be stuck and going up the ladder will be difficult.
You are committed to working with your mortgage payment and earning, you are saying in all advertisements for repayment if you do not pay your money, then you are at risk of recovering your home.
And yet, if the free spirit inside you cries out to remain free and not be tied to home-owning responsibilities, then maybe buying a home is not for you. Or, not right away, anyhow. But you can also read this article of investopedia.com to sharpen this idea of renting. And i think this article will help you a lot to decide what is better renting or buying a house.