When in need of a new home, the decision to buy or rent will always pop up.
The decision to buy or rent can be quite unsettling because things change: your down payment savings may grow or not and you start to consider moving to a cheaper or more expensive area. More so, there are different factors that play major roles in this vital decision like costing, marital status, mobility, age, and other things that might come into play.
Let us see the pros and cons of both cases.
Pros of buying
- Cost: It tends to cost less over time, This is because you no longer pay rent. No more rent means you have removed a recurrent expenditure.
- Stability: When a person is ready to settle down and probably build a family, buying a home is advised, to foster stability and build deep roots.
- Investment: Generally buying a house implies you are investing in yourself as it becomes an asset that you could even later make more money from. You could let it out for rent or use it as a short-let apartment.
- Control: you can now choose what goes where and the rules are made by you, you could choose to customize your home to your taste with the best fixtures.
Cons of buying
- Responsibility: With your own home comes the responsibility to clean, maintain and keep things in order.
- Finances: It costs a hefty amount to buy and sometimes mortgages could be expensive and repayment might be tiring.
- Less Flexibility: The option of buying is way more stringent and allows for little or no mobility.
- Illiquid assets: Real estate has a much lower liquidity turnaround time than other investments. You may not sell a house immediately if you need the money urgently.
- Depreciation: Over the years, due to depreciation especially for buildings, there is no guarantee that the price of the property will rise.
Pros of Renting
- Cost: It is usually way cheaper than buying a house. It also does not come with taxes and property fees.
- Maintenance: For rented property, there is less responsibility and pressure to ensure everything is in order as opposed to buying. There is more pressure to maintain a house when you actually own it.
- Mobility: Rent allows you to be able to move without essentially losing much even when you haven’t exhausted your tenancy fee.
- Less demanding: With the Renting option you don’t have many demands like taxes or even a tiring mortgage obligations.
Cons of Renting
- Less Control: In a rented property neither can you make permanent changes to the home nor can you customize the appearance. Usually, you are restricted in making changes and may be forced to accept conditions that do not suit your style.
- Societal limitations: You are limited by the rules of the house owner. Some house rules may prevent you from throwing parties, or keeping a pet (you cannot blame landlords.)
- No investment: Unlike buying which serves as a good investment, renting does not offer such an opportunity.
Did you know that at Realty hub, you can get to rent an apartment of your choice, get a property to buy, or advertise your property for sale or for let? Let us know the decision you have made and trust us to make it happen.