“Should I be buy or rent a house? Is it more beneficial to rent an apartment instead?” We have lost count of the number of times we’ve been asked this question!
There are a number of factors you should consider when stuck between buying and renting a home. Through this piece, we will look at the pros and cons of renting versus owning and highlight a few things you should keep in mind before making this major financial and living decision:
Renting ensures that you’re not bogged down under EMIs, property taxes, and other added expenses that come with owning a home. The liability tag associated with it is also on the lower side. For instance, you might be able to rent a luxurious, fully-furnished one bedroom apartment in Houston TX for as low as $944 a month. On the other hand, paying off a home loan and refurbishing a similar home is going to set you back by thousands of dollars.
In addition to this, you can also choose a home close to your child’s school or your office when you go down the renting path. Given its proximity to schools or commercial hubs, the same home might be outside your budget if you choose to buy instead.
Now, let’s talk about the advantages. Rents will only go up! There are no added tax benefits and you also don’t have many wealth creation avenues when you choose to rent. Also, when you are about to retire, you won’t have property assets even though you paid a significant chunk of your income in rents for years. And did we mention that you’ll also have to adhere to the rules set forth by landlords? So yes, there are significant pros and cons associated with renting a home.
One of the biggest perks of buying your home sweet home is the sense of security and privacy that comes with it. You won’t have to worry about living restrictions such as not being able to bring a pet home! In addition to this, you won’t have to think about typical tenant problems such as having to look for another place on short notice because the owner decided to sell the home.
The value of properties goes up with time unless extraordinary or unforeseen events hit the real estate market. Therefore, home-ownership may also be considered a sound financial investment. You also have to pay fixed-rate mortgages, unlike rents which always rise with every passing year.