Buying a home has its perks and cons, and so does renting a house. For some, they find it more convenient to rent. However, owning a home is a far better and wiser choice for most.
If you’re having second thoughts about whether or not to buy or rent a house, knowing the pros and cons of each choice will make it easier for you to decide. Here are some to get you started.
Pros of a Home Purchase
- Your home’s value can grow over time which means you get a Return on Investment and you get to build equity over the years
- You have the freedom over your property and can get as much privacy as you want.
- Buying a house means it becomes your legal property.
- You can buy a house even with a limited budget as affordable options exist like a Texas FHA loan, VA Loan, etc.
- You only need to provide the necessary documentation, get approved and you can start house hunting depending on your budget.
- Costs are more stable and predictable.
- You can sell it or rent it out and make money out of it.
Cons of a Home Purchase
- The home purchase would be a substantial responsibility thanks to maintenance, repairs and other costs like monthly mortgage if you applied for one.
- You’re required to pay for annual real property taxes, insurance and maintenance, and repairs.
- You’ll have to think of options when you want to move or relocate.
- Mortgage payments are usually higher than rental fees.
- Good Read: 13 Tax Secrets Every Smart Homeowner Should Know
Pros of Renting a Home
- Renting allows you to relocate as often as needed in cases of calamities, job relocation, etc.
- It allows you to live in an area you can’t afford to buy a home.
- You get to save your remaining money for investments since renting cost a lot less than paying for a monthly mortgage.
- You’re not the one responsible for all maintenance repairs which can be costly at times.
Cons of Renting a Home
Renting has no tax breaks – which means you can’t claim for any tax deductions when filing for tax returns.
Your rental fees can increase yearly depending on annual rental fluctuation rates.
Your freedom is limited to the terms set by your landlord.
You only get limited privacy, especially when renting properties where other tenants are renting.
There is no return on investment since the money you pay for housing goes to your landlord.
When choosing bet buying or renting a home, one should keep in mind that it’s not just about the money, but your comfort, convenience, and goals in life. If you’re not ready to settle for long-term and wants flexibility and lower fees, then renting might be for you. If you’re ready to commit, is willing to take responsibility for long-term and wants a tangible investment you can call your own, then buying a home is a better choice for you. Before you take your pick, make sure to consider your budget, your space needs, comfort, convenience, and especially your long and short-term goals.