Renting vs. Buying a Home
Buying is for long term, while renting can either be for short or long term usage. When a person decides to buy a house instead of renting, more often than not this person is considering long term. Most people buy house at least just once in their lifetime but there are also those who buy more than once because they had to move from one place to another due to work or perhaps personal reasons such as divorce. In buying a house, it is advised that you stay at least 5 to 7 years for you to recoup your investment. On the other hand renting one could be the best choice for those people who cannot yet commit to living in the same roof for several years.
There are advantages and disadvantages when you either rent or buy a house. When you rent a house you do not need to worry about the maintenance for it is the lessor who is liable to it in most cases. Secondly, if you are not yet permanent to the place or work you are into you can easily move from one place to the other, this is what makes renting a flexible one. However when you rent a house there is a big chance for the rental fees to go up. Moreover you cannot right away refurbish the house since there is still a need for the owner’s approval. Lastly you’re not building equity because renting one will only let you live in a place. The house will not be yours, if you have bought it, it could be an asset that you can possibly sell soon.
In contrast, buying a house needs both financial and emotional support since homeownership is not for everyone. When you own a house you can build equity. Also your housing payments will not increase if you only choose a fixed rate mortgage. The principal and interest payments will stay the same for the duration of the loan too. When you buy your own house you can use it as an investment. If you don’t like it anymore you can sell it out or offer it for renting. Owning a house also means you can decorate it how you want it to be. You can apply your favorite colors, exterior and interior designs provided however that you follow the rules in the community that you are living. Make it as how your dream house to looks like. Lastly you can indulge into the community you are located at. Making involvements in the community will allow you to socialize and be active in local activities because it is projected that you will live there for a long period of time. But then again when you buy you have to maintain your house. You are now liable of its cleanliness and orderliness, which means additional expenses will be incurred. Second is for you to pay property taxes because it is required. Next is that it is an illiquid asset. If a need arise regarding relocation or some changes, you cannot sell your house right away making it illiquid.
The decision is yours whether to rent or buy a house. You just have to weigh both of its advantages and disadvantages and of course considering your work and financial capacity.