Everyone of you dreams of owning a home and renting an apartment too (that’s a must for my fellow teenagers and young adults that need freedom from their parents to discover themselves, haha), in this article we’ll talk about the pros and cons of buying vs renting a home.
There’s that great filling of joy of owning a home and also renting an apartment. Being homeless isn’t funny, so it’s the best dream to own your own.
You want to get your own home and apartment? Here are some tips of the pros and cons of buying vs renting a home . They include
Pros of buying a home
1. It provides you security.
Among the pros of buying vs renting a home, the privilege of security such as not having to worry about shelter anymore is of great importance. You don’t have to always set out money for rent or run from your landlord when you don’t have enough to pay for rent.
2. You can always make changes/alterations.
Since it’s your own home, you’re always free to make any fixing, altering or beautification you choose to make. This is unlike when you rent an apartment. This is a great advantage in the comparism of buying vs renting a home.
3. There are tax benefits for home owners.
It depends on the state you reside. In buying vs renting a home, tax benefits are ways most government around the world use as incentives to encourage people to invest in buying their home instead of renting.
4. Loan facility can be made accessible to home owners.
In comparing buying vs renting a home, this is a major advantage as different governments have regulations for the banks of the world to make loan opportunities accessible to home owners. Having a home let’s you have a loan facility based on mortgage.
5. It’s a great long term investment.
This might not be the case when the market is volatile but if you’re willing in investing the years, it will be worth it.
If you wish to invest in Real Estate, click here
Don't be left out!
Every member of our newsletter enjoys;
Free insights, guides and tips on business, marketing, investments, finance and wealth creation.
Cons of buying a home
1. Large amount of finance is invested in buying a home.
In comparing buying vs renting a home, you need to have a large amount of money to be able to make a home purchase. You need to make this a long term goal. With the right plans and strategies you can earn enough money to make this decision.
2. Emotions may easily get in the way of decision making.
When you compare buying vs renting a home, just like in every other money decision, most persons let emotions get in the way. There comes a time that might warrant you to sell your home to move forward. This case of emotions is even worse because it’s a place that you have been living in. You have to try to get emotions out of the way in order to move forward.
3. High mortgage rates.
Depending on the country/state, mortgage rates can be so high at times when you have to decide between the options of buying vs renting a home. And when compared with the time to pay back, it seems unrealistic. That’s why you have to ensure that whatever reason you’re taking a mortgage must be worth it. For me, it must be for a profitable investment at a viable market. If you know, and you are sure that there is a family member(s) with health conditions that can lead to great financial spending, then a health insurance is necessary to have.
4. There are a lot of hidden costs in buying a home.
In buying vs renting a home, there are a lot of hidden costs in the purchase, you have to make your investigation from any viable source. You should ask the questions.This is important so you avoid surprise spendings for other hidden maintenance. Infact you should use the services of a Real Estate consultant and pay them well. It will be worth it.
In the comparison of buying vs renting a home , after stating the pros and cons of buying a home, we have to also review the pros and cons of renting a home. These includes
Pros of renting a home
1. If flexibility is your option then renting should be your choice.
Owning a home can be a bad choice if you’re the type who is constantly on the move. Under this circumstance, it will be less of an advantage in buying vs renting a home. If the nature of your daily activities make you travel a lot or relocate a lot then renting will be a good choice.
2. Most times you aren’t liable for property expenses.
The downside sometimes will be that the time and level of the repairs may not go according to your expectations and this is were there’s more of an advantage in buying vs renting a home. But if you don’t mind, then it’s ok.
3. Credit requirements are less stringent.
This depends and varies from country to country.
4. You can possibly live in a better area.
Since rent may be lower than monthly mortgage rates it can afford you the opportunity to reside at a better part of town. And this is more of an advantage in buying vs renting a home.
Cons of renting a home
1. You need permission to make changes to the apartment.
This is a big disadvantage in buying vs renting a home. If you’re given permission to make changes, any change you make is at your expense and it’s impossible to get back what you spent to make such changes from your landlord.
2. You have no control over annual rent fluctuations.
Since you aren’t the owner of the house/apartment, you have to agree with the annual rent rate of the landlord, when to pay and how to pay. If perhaps there’s an increment in the rent, you’d have to pay regardless.
3. Living above your means
Renting will be considered a waste of money when you live above your means, staying at the expensive places of the town.
4. You have time limiting security.
This means your security of having a shelter is limited to how long your rent money can cover. Your security expires when your rent expires.
There is nothing sweeter than knowing that you have a property to make use of and as you use, the value goes up.
That’s the power you get for buying your home when making a decision between buying vs renting a home. I’m sure you will really love to be in that position.
Question; What do you think about buying a home and renting a home?
Thank you for reading at WealthOnPoint.
I’m the cofounder of WealthOnPoint. Business has always been where my interest lies. If you have any business, finance or investment related issue, feel free to contact WealthOnPoint via email [email protected]
Our team is more than happy to help you out.