The Pros and Cons: Buying or Renting a Home
When it comes to making decisions, buying or renting a house is probably at the top of the biggest ones you can make in your life. So, the pressure is certainly on and a lot of people are confused which will prove more profitable (and convenient) in the long run. Listed below are some of the pros and cons to both of these choices.
Buying a Home
- An investment. The biggest pro to buying a house is certainly the fact that you are actually investing your money, not just spending it.
- Tax benefits. As a homeowner, you can deduct your mortgage interest payment, plus you are building equity while you are paying off your loan.
- You have complete freedom to live however you want – you can smoke, have pets, decorate however you like, etc.
- Pride of owning a property can give you a sense of accomplishment in your life.
- Owning a property makes you settle down and gives you a sense of stability.
- While owning a home, you are the boss, you choose who can enter and who cannot. No landlord knocking on your door anytime of the day.
- Being your own boss comes with a lot more responsibility than one might think. You are the one responsible for paying your maintenance, etc.
- No liquidity. If you choose to sell your house, it is not a quick process as one might think. It may take years before you actually sell it.
- No certainty in expenses. One month you may spend the expected amount and the next you may spend a lot of money fixing something in the bathroom, for instance.
- You can lose the value of your property.
Renting a Home
- No responsibility. You are not the one who will pay if an AC gets broken all of a sudden.
- Less expensive. It is, oftentimes, less expensive to rent than to buy a home, as there are no extra expenses. However, this is not always the case.
- More flexibility. If you choose to one day simply move, you can just pack you bags and go. You don’t have to worry about selling the house first in order to leave.
- While you are a renter, you can’t build equity as, in this case, your home is not your asset.
- Your landlord can increase your monthly payment anytime they wish. Also, the landlord is the one who can keep you from painting a hideous orange wall white, as it is their home. Worst of all, your landlord can evict you at any time.
- No freedom. Some renting homes may have a ‘’No smoking’’ or ‘’No pets’’ policy, so if you are a smoker and an animal lover, you may have trouble finding a home to rent.
- No tax benefits
So, which is better? As we previously stated, this is one of the biggest decisions of your life and we wouldn’t dare advise you in any way. We are simply here to lay out the facts, so you can decide for yourself. Happy house hunting either way!