Renting vs. buying a home: Which one suits you most?
When the question comes that what will suit you while you have to decide renting vs. buying a house, there will always be a strong debate due to the financial pros and cons. No doubt both sides of the picture are full of valid points; still it can be a little confusing for those who are going to decide it for the first time in life. The recent modifications in the tax laws have also made it less feasible to own a house, so the dispute of renting vs. buying seems to settle does with this single point. Still there are many other points which should be considered in the rent vs. buy analysis. Well, we are going to sum up all the points in this article is that we want our readers to be feel at home, whatever choice they are going to make with regard to renting and investing vs. buying.
Renting vs. Buying Pros and Cons
When deciding renting vs. buying the most common argument is,
‘Why should you pay a monthly rent on regular basis to a landlord along with all the utility bills when you can own a home by paying same amount of installments even for a specific period of time?’
In fact, there are many other than financial reasons why renting home stands more appealing and suitable. You always need to be sure whether you are in a good financial position to buy a house or not. You always do not have enough capital for that purpose, but on the other hand while analyzing renting vs. buying, your financial position or sound amount of capital does not matter, you just have to pay the advance and rent to occupy any dwelling that suits you on the first hand. In most cases you have multiple choices and the first house at hand is not your only consideration either. If you’re financial circumstances aren’t in order, and you think that yet is it is not the proper time you can live as long as you want on rent.
Is Paying Rent a Waste of Money?
The question often asked when analyzing renting vs. buying is that whether paying rent is a total wastage of your money as you remain homeless at the end no matter how much rent you have paid through all those years. Yes, in fact you are wasting money in a sense, but the real picture is not so. You are always getting something in return of your heavy rent each month e.g.; shelter, safety, peace of mind, and a healthy environment for yourself and your beloved ones. Even if you buy that house, you’ll have to spend a lot of money in terms of various taxes and other fees – like the rent, it is the capital you will not be able to see again. Thus owning a house isn’t always just that pleasant as it seems rom the farther side.
Renting Might Cost Less!
Another side of the picture when comparing renting vs. buying is that even over the long term in some cases the rent may be smaller as compared to the large amount you have to pay for owning a house at the same location. There might also be a long lasting list of hidden expenses; associated with that agenda. A golden rule in this regard is not to purchase a house if you know you won’t live there for at least ten years. This in short is the perfect recipe for renting vs. buying a home. To determine what will suit you between renting vs. buying, the following points may be useful: What can you afford between a rent and an ownership?
How much savings you really have?
How long are you planning to stay in that specific location?
Are you easy with moving around in case of dislocating?
Are you easy with the repairs/maintenance charges in case you own a house?
How strong are your financial foundations?
Dear readers, as you have seen, we have tried to analyze the topic of renting vs. buying very well on our side, but as we all know, there are always certain chances of improvement, hence, you are welcome to write your piece of mind in the comments section below.