Deciding to buy a house is one of the most important decisions you will have to make in a lifetime. It comes with a lot of stress, responsibilities, as well as benefits. That`s why the majority of the people wonder whether they should be renting or buying a house. And the answer is never as simple as deciding on one or the other. The truth is that both renting and buying have their own pros and cons. It`s all about comparing them and making the best decision for your current financial situation.
Renting or buying? Pros and cons of buying a property
Before we go into further detail, let`s just mention that buying a house is a very grown-up thing to do. It is one of those things in life that come with a lot of risks, but can, in the end, turn out to be the best decision and investment ever. That is why there are so many important things to look for when buying a house. So, pay a lot of attention to all the pros and cons, and decide whether you are ready for this venture.
Pros of buying a property
- Being a homeowner offers you security. Real estate is something that will never go to waste. Owning a house will give you a chance to enlarge your wealth in the long run. How will it do that? Well, the chances are that the value of the property will rise over time, so you can sell it for a large sum of money and make a clean profit.
- Buying a house or an apartment will give you creative control over it. You can renovate whatever you want, whenever you want, and by doing so increase the house value in the process. This is something you wouldn`t be able to do if you were renting, as you would need your landlord`s permission for every change you want to make. You can increase the value of your house even when decorating on a tight budget, so that is one major pro of buying instead of renting.
- You can become a landlord. That`s right, one more way for you to make money out of buying a property. If in the future you have to move for one reason or another, you can simply rent your house and get money every month.
Cons of buying a property
- Buying a house is a huge financial burden. Not only do you have to pay the mortgage, but there are also additional costs, such as house maintenance, taxes, and insurance. So, before buying a house, think carefully whether you are financially stable enough for such a venture.
- There is a slight risk of not making any money through resale, but actually losing it. This is something that is out of your hands since everything depends on the economic situation in the country.
- Moving is not as easy as when you are renting. If you own a house, before moving you first need to either rent it or sell it, which can be a lengthy process. So, if you are not completely sure you will stay in that same house in the foreseeable future, rethink buying.
Renting or buying? Pros and cons of renting a property
Renting a place is something we`ve all done at some point. And while doing so, all of us have at least once come across a thought of whether we should proceed with renting or buying. So here you will find listed all the pros and cons of renting.
Pros of renting a property
- Renting, unlike buying, requires no long-term commitment on your part. Renting a place offers you to be super flexible. You can just pack up and go. Of course, that is after giving your one-month notice to the landlord.
- You don`t have to pay any additional money other than your monthly rent. That is because all the potential repairs are covered by the homeowner.
- If after paying your rent you still have some additional money left, you can redirect that money for some other purpose. Whether that purpose is saving for your own house in the future, saving for a car, or even just saving for a vacation, you won`t have to worry about additional costs all the homeowners have to worry about.
Cons of renting a property
- You have no liberty to make any changes to the property. Since the house or an apartment is not legally yours, you have to ask for a permission for even the slightest alterations. This is one big con of renting a property instead of buying it.
- Another big con of renting a property is that you can`t make any money from it. Because you have almost no obligations, other than your rent money, you also don`t get to reap any benefits. This is something you want to take into consideration when deciding whether to rent or buy.
- You can never be sure that your landlord will renew your lease once it expires. That means that you might have to relocate at a time that is not convenient for you. Which is a complete opposite to buying, where you have all the security in the world.
Well, that would be it. The biggest pros and cons of both renting and buying. Making a final decision is up to you. Weigh the pros and cons and decide whether you want to proceed with renting or buying. Whatever you decide, you have an important move in front of you. And moving is never easy. However, there are ways to make your move as simple as possible, so make sure to do your research and prepare yourself. What`s left to say is – good luck! May your every decision be a successful one.