Should I Buy a Home or Keep Renting?
We usually get confused in deciding whether to rent or buy a house. People have different views. Some people choose to rent because they can easily move whenever they wish to, while others prefer to rent because they cannot afford to manage the responsibility that comes with buying a home.
Buying a home is a big financial matter and there are key points that should be considered before proceeding.
Consider These Before Making a Decision
- Are you planning to spend a number of years in a house?
- Is your job permanent or will you be transferred; is there any flexibility to move?
- Does working in a garden interest you?
- Have you planned on investing in a home or do you wish to keep your earnings in the bank?
These questions will mostly solve your queries as to whether you should rent or buy your house. Next, you can check out the advantages and disadvantages of buying and renting a home to confirm your decisions.
Advantages of Buying a Home
- After paying off the mortgage, you are the homeowner and the boss.
- On your retirement, you don't have to worry about paying rent.
- Your home equity can be helpful in upgrading to a bigger home in the future.
- You can renovate your home and increase the value.
- You don't have to get permission from the landlord for small things; you don't have anyone interfering.
Disadvantages of Buying a Home
- Buying a home is a big matter, and you need to be financially secure before proceeding.
- Owning a home has less flexibility, you cannot move out any time you wish.
- Buying comes with maintenance costs, repair costs and many other things.
- During the recession, your home value can decrease and you might not get a good price when selling.
Advantages of Renting a Home
- You are flexible and can move out whenever you wish.
- You don't have to worry about the maintenance and repair costs, owners will pay for it.
- During recession periods, the rent decreases leaving you with a lower monthly bill.
- Tenants don’t have to worry about property taxes and insurance. Renter's insurance is cheaper than home owner’s insurance.
Disadvantages of Renting a Home
- When you rent a home, you cannot build equity, even over a longer period. You cannot participate in any improvements in the housing market.
- Tenants cannot personalize their home when they rent it. Some landlords are very strict by nature and don't allow any changes in their homes.
- Renting comes with lots of restriction. Some landlords don't allow pets, and you may have to compromise on many things.
- Renting a home is an insecure deal because it's up to the landlord whether he wishes to renew the lease or not.
Buying or renting is a personal decision and entirely depends on the financial condition of the person, their lifestyle and work-life. Overall, buying a home is preferable and has long-term benefits.