Renting vs Buying: Modern Housing Choices
Should you buy a house or rent one? The choice is like asking whether or not you should play at Verde Casino online or visit a land-based one. Today, we will show you the advantages and disadvantages of both options when it comes to houses. In the end, we are hoping that we have helped make a decision.
Pros and Cons of Renting a House
Here are the pros of renting a house:
- Flexibility in movement
- No liability to maintain the house at all
- Easier to pay than a house
Here are the cons of renting a house:
- You will not own the property
- The price of rent can go up
- You cannot make changes to the house
- You can get evicted
Renting a house or an apartment is ideal if you move a lot. It is also an excellent choice if you are single and are moving to another place or city. As a young person with no family, flexibility matters a lot, especially if you have a job requiring you to move.
It is easy to just vacate the place if you rent. If you get a promotion and it requires that you move to another city, there are no issues. Just give the landlord notice, and you can leave.
If you rent a house, you do not have to maintain it. It is the landlord’s obligation to fix the pipes, heater, etc.
However, this apartment will never be yours. As such, you keep paying for a property that you will never own. The problem with this is you are wasting money. You could have used that same rent money to pay for a mortgage if you purchased a house.
The landlord can also evict you. If he sold the property and the new owners want to convert it into something else, you must leave.
Pros and Cons of Buying a House
Here are the pros of buying a house:
- You are building equity on the property
- Your credit score will increase
- You can avail of tax deductions
- You own the house and control it
Here are the cons of buying a house:
- The upfront cost is expensive
- You shoulder the maintenance
Owning a house is a dream come true for many people. The main advantage of a house is that you are not likely to be homeless. Once you have paid your amortization, it is yours.
So, even if you lose your job, you have a place to stay. If you get sick, you do not have to worry about paying the rent.
The house will also build equity, which means its value will go up. The only way a property value can go down is if the neighbourhood becomes economically unstable or full of crime.
Once the value of your house goes up, you can sell it for a profit. Sure, you will pay taxes and capital gains, but then you will still make a profit.
You also have control over your house, which means you can do repairs if you want. Of course, you will also shoulder the costs of these repairs. In addition, you are free to make improvements to your property.
One disadvantage of a house is you are stuck there, not only physically but also financially. You cannot leave that house, as no one will take care of it.
The other disadvantage is that you are stuck in financial liability. For as long as the house is not paid in full, you must pay your monthly mortgage. If you fail to pay consistently, the bank will foreclose that property.
In addition, you must pay for insurance. The house that you have may burn down. In this case, you will lose if you are not insured. The house may get destroyed, but then it is not your loss, as you only paid for your monthly stay.
Houses are also subject to fees if you are part of a homeowner’s association (HOA). In some areas, you cannot even make improvements that are not in compliance with the rules of the HOA. It is a long-term investment, too. It will take you 15 to 20 years to fully pay your mortgage.
Lastly, if you want to leave, it is not easy to sell the property. It will take some time, plus you have to pay the broker a fee.
At the end of the day, it is your situation that dictates whether or not you must buy a house or just rent one. If you keep on moving, then it makes perfect sense that you rent a house, not buy one.
However, if you already have a business and you are sure you want to stay rooted in a particular community, you must buy a house. It also makes sense if your goal is to invest in property and then sell it later for a higher price.