Renting vs. buying: Which one is better option?
Home ownership is a big decision. The place is going to be the one where you are going to spend rest of your life. Not every home meant and designed to be according to your dreams. In that case if you own a land and built home it needs a lot of cost. In other scenario, the option is to go for renting a home. Where you rent out a place to temporarily live and experience the life. Either you rent a house or buy it, it has both pros and cons. You will find this article helpful to choose what is best for you. Let’s have a brief look to advantages and disadvantages to both living styles;
Advantages of renting a house:
• Flexibility: If you are the one to rent a house frequently, probably you are the one that need to change the accommodation for your job. Most of the people also change residence a lot because they do not like to reside at one place for longer durations. House lease mostly comes with an year agreement. It depends on landlord and tenant to move after one year or extend the agreement. Tenant can also leave before the suggested time slot if break the lease agreement. In short, there is wider flexibility of moving in renting a home then owning one.
• Renting a house is less expensive than owning one. Tenants have a lot of benefits over landlords. Tenants do not need to pay property taxes. Tenants have all the access to amenities that comes with a house including a swimming pool, a gym, a wide-open garage or a beautiful garden without any additional charges. All the maintenance costs and repairs have to be maintained by landlord until and unless tenant did some mishap.
Disadvantages of renting a house:
• There are higher risks of instability. Anytime a landlord can give a notice on 30 days basis and you have to move out of house a any cost.
• There are no long term savings in your hand because you put money in monthly rents. It will not give you equity.
• Tenant cannot do any renovations and change in wall paints or infrastructure as per his likes or dislikes. Landlord do not allow tenant to personalize the space.
• Rent might increase year after year and you cannot sy no to landlord for increasing payments. Either you move to less costly housing place with low rent that also comes with less or no amenities and bad infrastructure and location.
Advantages of being a landlord:
• House ownership is a best investment in the long run either you live in or rent out a place both options are in your favor.
• Home ownership gives you a mind satisfaction that you have a permanent place to reside. In the economic downfall situations or the pandemic situations, everyone was worried. Homeowners were satisfied that they did not need to move out of a space due to financial crisis.
• Home ownership gives a complete freedom to choose for redecorations, having pets, renovation as you like. Any renovation or changes increase the value of house and its easier to sell the property whenever needed.
• The flexibility is to rent out a part of house that helps the landlord to pay his mortgage payments and multiply the benefits of one property.
Disadvantages of being a landlord:
• Selling a property is not an easy task. The market trends do not favor the selling process every time. It costs a lot and also it is time taking procedure.
• While renting a house all the maintenance costs and repairs are at landlord’s pocket. That sometimes becomes costly.
• Property taxes are a big burden on landlords.
• It’s a long-term financial commitment.
• Emotional attachment with a community makes it very difficult to sell a property or rent it out and leave the area suddenly.