RENTING VS BUYING – SHOULD I RENT OR BUY?

RENTING VS BUYING – SHOULD I RENT OR BUY?

Finding a place to live can be a difficult task. Many things go through your head when you make this decision. The first of which is probably “Should I buy a house or should I rent a house?”

There are a lot of factors to consider before deciding whether you should buy a house or rent. Both options come with their fair share of financial implications. So first it’s important to understand the pros and cons of each prior to making a commitment.

PROS OF RENTING A HOUSE

• Renting allows you to save money you won’t have to spend your savings on deposits and other costs associated with homeownership. You might be at a point in your life where you aren’t ready to devote all of your money and monthly income to the down payment and a mortgage.
• When you rent a house relocating is easier. Sometimes you need to move frequently from one place to another due to work, so renting allows you to move easily by ending your lease
• Renting helps you to diversify your financial portfolio. Buying a house means devoting all your savings to a single asset. Are you comfortable putting the majority? If not, then renting is the better option. It gives you the flexibility to invest your money in a variety of ways.
• There is less responsibility while renting as Maintenance and Repairs are not your responsibility.
• While renting credit requirements are less strict.

CONS OF RENTING A HOUSE.

• Your money doesn’t grow because no equity is built over time. You don’t get any return on property taken on rent.
• ·Renting may be more costly in long run, you will always have rental payments if you chose a life of the tenancy. It may be tough to come up with a substantial chunk of money each month.
• While renting there are too many restrictions like renovating property according to your requirements.

PROS OF BUYING A HOUSE.

• It provides you with security and independence. Owning a house can give you a feeling of stability and settlement. There is also some pride of owning a house.
• House prices have risen over time. It’s enticing to have an asset that could appreciate in value over time. While property prices have risen steadily through time.
• You can take advantage of your home’s equity, the percentage of your home that you own is referred to as home equity. As you pay off your loan and the value of your home rises, your equity will rise as well. You could then be able to use the equity to put money into something like stocks or a managed fund.

CONS OF BUYING A HOUSE.

• It is harder to relocate, owning a house can be a con if you must relocate every year or two for your job. In fact, it wouldn’t be worth it since there are initial homeownership costs and expenses in purchasing a home like closing costs and commissions.
•  You have to pay additional costs while owning a home, like homeownership costs that you don’t have as a renter and some can be quite substantial.
• Buying a house can be more expensive than renting one.

FINAL THOUGHTS

After considering both sides of buying & renting you can definitely make a choice.  But we think that renting a property makes sense if you are not sure about the duration of your stay in a particular city. It makes no sense to buy a property in a city where you are not going to spend time. Taking a property on rent is a viable option for those who wish to enjoy living in a luxurious apartment that they might not be able to afford to buy. And if you want to rent or rent out the apartment Rentozo is the platform for you where you can easily find your tenant. Rentozo makes renting easier for you, as all your rental problems can be solved under one roof.