Buying a house is a big decision. It is a decision that requires a significant amount of research and homework. So, maybe you are renting for the last couple of years and now plan to move. A normal question that pops up in every person’s head in this situation is whether to take the leap and buy a home or continue renting. This article weighs the pros and cons of both options with the intent to help you take your decision once and for all.
Option 1: Buying
- Buying a home can be seen as an investment that can end up giving you various benefits in the future. If the value of your property increases, you can use it to support you financially if times get tough.
- Having a home that you can call your own is something that brings mental peace and satisfaction. If you have a home of your own, you do not have to stress about your living situation in the future.
- A lot of states give out tax benefits for those that own house. This means your income after taxes is increased by buying a home.
- Another huge benefit that buyers feel they have is the liberty to make changes to the house however they wish. Having your own home does not bring any restrictions, and you can design the interior and exterior of your house in any way your heart desires.
- The first disadvantage that comes with the option of buying is that it requires a profound level of commitment. You have to be financially as well as in other ways committed to the house.
- The down payment, moving costs, insurance costs and closing costs all are the initial expenses. So, acquiring the house in the initial phase comes with a lot of costs.
- If you need to move for a job or any other reason it will not be easy. Since you own the house, it is not possible for you to just get up and leave.
- You are responsible for the maintenance of the house. That means you have to pay for the entire fixtures, replacements and other costs from your pocket.
Option 2: Renting
- Payments might be lower than when owning a house. This, however, depends on the kind of place you choose to live in.
- You do not need to think twice before moving to another state or country. You have the ease to move around as much as you wish and do not have to stay committed to one place only.
- You are not liable to pay for the maintenance of the house.
- You can save money for other purposes and make other investments.
- Unlike the mortgage payments in case of a house that is owned, rental payments tend to be unpredictable. If your landlord increases the payment, it could hurt your financial situation.
- You will need your landlord’s permission before making any changes to the accommodation.
- A lot of people consider paying rent as wasting money down the drain. This is because paying rent does not equate to you having an asset to yourself in the end.
Weighing in the advantages and disadvantages of each option is good. However, it should be kept in mind that the decision not only depends on the things mentioned in this article. But also, it depends on many other factors such as the size of your family, the location, the period for which you intend to stay in a particular place and the like.
– Onias Derilus