Renting A Home Vs Buying A Home

Rising apartment rents and extremely low mortgage rates in many areas especially cities have led some people to ponder upon buying their own house. However, others are in the hope of recovery of housing market so they choose to wait for the same.

Its a bit difficult to say that renting is much better or buying is in fashion these days. In order to determine whether to rent or buy a house a no. of things must be kept in mind.  The biggest factor that matters is your own financial state. But still the quest remains as such - RENT OR BUY.

So let us see what exactly the two are; what are their pros and cons.

Buying a house is an important decision that must not be taken lightly. It can be a smart financial move only when you are in a financially stable state i.e. you are capable enough to pay away all the taxes and other expenditures. But better be off with renting when you don’t have much money.

Switching on to the pros and cons we come to know about the two at a close glance.

When it comes to Renting, it offers you a no. of advantages. Say freedom, flexibility to switch from one place to other i.e.  relocation. No maintenance of the house as you are just a paying guest not the owner. Avoidance to owning a depreciating asset can be made. This is an undeniable truth that each and everything in this world has good and bad side just like a coin so it is also expected that it possess disadvantages too.

Mind it that the continuous rising rents can make you fall in big loss. The major disadvantage is that you can’t build equity as it will not provide you with an asset to sell when you are ready to move. You are deprived of tax benefits. Moreover, you are bound to take owner’s permission if in case you want to make any changes in the house. 

 .  You have the ability to decorate your house in the way that suits your taste. Also you can enjoy provision of tax breaks for home-owners.

On the other hand, buying a house can help you build equity. You are able to use your home as an investment. Your housing payments will stay stable

Now when talking about its disadvantages, it is to be noted that your home is an illiquid asset. You have to pay for your own maintenance. You have to pay property taxes. This “pay” word is attached with almost each and everything that is expected to be given to the concerned authorities. Moreover, there is a probability that your home could lose value as there’s no guarantee that your home will increase in value over time.

So the fact is, both the options are equally good and bad it’s up to you how skilfully you make a right decision in accordance to the prevailing situation.