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
- A 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.
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 of 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.