Who does not want to own their house and live in it? Living in our dream homes has always remained a long sought-for ambition. However, one may not always be in the right financial state to buy a house right away, for let’s be honest, buying a house can be pretty tough on your pockets! Hence, it is best to sit and find out what is the right choice for you in your present financial situation and understand whether you can afford to buy a house right away.
Just like building an escape room requires a lot of investments similarly, buying a house also comes with significant essential investments that you cannot do without. Though renting a home does not require so many investments, it still requires a steady and regular income to maintain! Based on your financial situation and your lifestyle, you can choose whether to rent or buy a house.
In this article, we will underline some of the key differences between renting and buying a house and help you make the right choice. So, check it out:
Understanding the basic aspects of renting a house
Let us get started with understanding what renting a house can look like. Initially, you need to bid goodbye to the age-old myth of how renting a house is like showering down a handsome sum of money monthly. Well, that is not true, especially given the fact that nothing comes for free today.
Advantages of renting your home
- Contrary to a monthly house payment, paying your monthly house rent can be significantly budget friendly.
- The monthly rent you pay your landlord covers a wide range of charges including utility costs. Hence, renting a house can be surprisingly affordable.
- In contrast to owning your house, renting does not require you to worry about maintenance costs or paying repair bills, as your landlord takes care of it.
- Furthermore, you no longer need to worry about paying your property taxes when you rent a house.
- Often your rented house may offer you exquisite facilities like swimming pools, fitness centers, and others, for which you do not need to make any additional payment. Thus, you can avail these benefits free of cost!
- When you buy your house, you need to pay a large sum of money as a down payment. However, when you rent your house, you need to pay your security deposit which is the same as one month’s rent. Hence, renting a house can help you save money.
- The monthly rent for your house will remain unchanged till the time of the lease agreement which you sign.
- A renter’s insurance policy is far more affordable than a homeowner’s insurance policy.
Disadvantages of renting your home
- Though you need not pay any maintenance bill, you may still face situations where you may need to fight hard with your landlord to get repairs done on time.
- The rental agreement may not be renewed in timely intervals and even when it is done, you may find an unprecedented increase in the rent.
- You can renovate the house according to your desires.
- The landlord may often impose rules and regulations for you to strictly abide follow.
Understanding the basic aspects of buying a house
Let us get started with understanding what buying a house can look like. Much like renting, buying a house also comes with its own set of advantages and disadvantages. For starters, you will now have a house that you can call your own and will be free to make changes to it as per your desires!
Advantages of buying your home
- Buying your house offers you an immense sense of privacy, which is nearly impossible when you rent your house.
- You can further benefit from enjoying tax deductions.
- It further allows you to build up a strong history of credits.
- When you own any property, there is a fixed-rate mortgage imposed upon it. Hence, you can now benefit from seamlessly predicting your costs!
- Buying and owning your house will further make you proud of yourself and allow you to grow close to your neighborhood.
- You can exercise all the freedom you may want to design and decorate your house to make it just like your dreams!
- You can now also curate your equity for your future.
Disadvantages of buying your home
- Buying your house requires a long-time financial investment.
- You need to incur all your maintenance costs, from the small ones to even the big ones.
- The mortgage rates can often soar up high.
- When you buy and build your house, you need to spend a sufficient sum of money on your down payments.
Now that you have a clear picture of what renting or buying a house looks like, you are now at a better position to make the right choice for yourself. So, go ahead and make the best decision for yourself and choose between the options lying ahead of you!