It is a well-known fact that having a home is a basic need for all of us. Whether it’s a studio, apartment, or a house, each of us needs a place to go home to after a long day at work. This brings us to the question, should you buy a house or just rent one? It’s quite a difficult question because to answer it, we have to consider many other factors.
Renting a House
Buying a house certainly isn’t cheap. That’s why we choose the less expensive option, which is to rent. But in the long run, is it really cheaper? We’ve gathered the best information we could find and came up with this quick list of pros & cons of renting a house.
Cheaper Monthly Payment
Renting a house would almost always cost less than paying mortgages. That’s because you’re paying for staying in the place and not really for owning it.
No Taxes or Maintenance
When you rent a house, you don’t have to worry about paying property taxes to the government. Rental houses would often have their own maintenance service whenever you need to fix certain parts of the home.
No Down Payment Required
As compared to houses in which you have to pay a certain percentage of the house’s total price, renting doesn’t need any of that. The most that a rental house would ask you to shell out at first is a one or two-month deposit.
No Wealth Creation
Perhaps one of the most obvious disadvantages of renting is that there is no wealth creation. If you pay rent for 30 years, you go home with nothing after 30 years. There wouldn’t be any ownership at all.
Less Stability, More Rules
The thing about not having your own place is that you have no say in the rules. If the owner decides to sell the property, you would have to move out on short notice.
Buying a House
After talking about renting a house, let’s move on to the other choice that we have. For some people, buying a house isn’t really a matter of choice because of its costs. However, if you’re currently renting a property now, chances are you can somehow afford to own a house.
Payments Build Equity
The thing about owning a house is you’re going to pay the mortgage. Every time you pay for a mortgage, your asset expands because you’re starting to own a property. Having a diverse portfolio means your net worth gets higher as well. When the time comes that you want to have more money, you can liquidize your properties and turn them into cash by selling them.
Another advantage of owning a property is it’s a form of saving or investment. Paying for it monthly means you’re in the process of building your wealth while paying for a place to stay. Looking for the lowest mortgage rates for you will also help minimize your monthly expenses and expand your savings.
Having your own place means it’s stable. You don’t have to move at any point in time. It’s all a matter of your own preference. There won’t be any surprise notice to move out because you make your own house rules. Apart from that, if you ever need to move to a different place, you can always put the house for rent for extra income. You can always check out the rent trends in your area to see what you would be looking at, such as the average rent in Oklahoma.
To be completely honest, owning a property is a bit more expensive than renting. That’s because mortgages often have a certain interest percentage placed on top of the total sum of money you borrowed from a bank or lender.
It also presents itself with quite a lot of responsibilities like maintenance. As compared to renting, wherein the owner of the house would pay for fixing broken parts of your house, owning a property means you’re the one responsible for fixing everything. This also means additional costs.
Home Prices Vary
The price of owning a house varies depending on location. Ironically, it’s ideal to buy a property in places where rent is high. That’s because the gap between the rent and mortgage doesn’t differ too much, so you’d much rather spend your money on something that would be worth it in the long run instead of paying for rent at almost the same amount and going home with nothing after 30 years.
There isn’t a yes or no answer in knowing whether renting or buying is much better. There are a lot of factors that you need to consider. It all depends on your personal preference and current situation. Sure, renting is a lot cheaper, but it’s only temporary. If you want something you can own after a few decades, buying a property is more worth it in the long run.
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