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When making a decision related to our home, and the possibilities of establishing ourselves in a safe haven in which we feel comfortable and related with, there are many factors we must consider. The main decision rests between renting a house or apartment or buying the property. Each buying option has its own timeline and cost, as well as its respective benefits and disadvantages.
In this article, we want to share with you a list of pros and cons of both renting and buying, so that you can make an informed decision that fits your needs when the time comes.
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View articleMain pros of renting a house
Before choosing to rent a place, you should consider some fundamental elements. Here are some pros of renting a house.
First and foremost, you’ll have more freedom. You can make a quick decision if you want to move, especially in cases where the lease is short-term.
Another important aspect is that you are not responsible for maintaining the rented area. If there is a need for a repair, you can talk to your landlord, and they will do all the repairs and maintenance for you. Because of this, renting can be cheaper than owning a home.
Plus, since you're not paying for any of the repairs or maintenance, you’ll have better control of your budget.
Another advantage is that, if you work or travel frequently, renting a house or an apartment may be convenient as you won’t have to spend more money to live in and enjoy your home.
Main disadvantages of renting
Your landlord may decide to increase the rent at any time, which can create a feeling of instability or lack of control over your finances. Similarly, you cannot generate capital from a property that you’re renting. This means that it can be your home, but you are not paying to make it your asset.
Another disadvantage is that the landlord will not allow any changes to be made to your house or apartment without the owner's approval, which means that you may not be able to decorate or remodel it to your liking. Also, some homes or apartments for rent have a “no pets” policy. So, finding a pet-friendly place to rent can be a bit difficult if you're an animal lover.
Lastly, another significant disadvantage is that your landlord may decide to put the property up for sale or give it to a family member, so you may have to leave at any time. If the value of the real estate property increases, the owner may decide to sell it for a profit, though the eviction will always be subject to your lease’s rules and obligations.
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View articlePros and cons of buying a house
Just as there are some benefits and drawbacks to renting a home, there are also various pros and cons to buying a home. The following list can help you make a final decision.
Advantages of buying a house
Owning a home can give you a sense of grounding and stability. There is also the pride of owning a property, and having the complete freedom to decorate and renovate the property in any way you’d like, as you are the owner.
Also, buying a house can serve as an investment. You can buy it, and then rent it for a monthly profit. You can also deduct the interest payment on your mortgage, and, additionally, accumulate capital while paying off your loan.
It is worth noting that, in a house, you have total freedom to live the way you want. You can have pets, change appliances, renovate, and much more, without anyone stopping you. Plus, you’ll have the advantage of having your own privacy.
It should also be taken into account that, except for an unexpected price drop, homeownership is the equivalent of a forced savings account. You pay your lender every month, but eventually the cash comes back to you as equity, as the market value of your home increases over time. With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan.
By owning your home, you can customize your space. Matching the rugs with the curtains, painting the walls in the most vivid colors, expanding or building new spaces to your liking… You can do all of these things whenever you want because you own the space.
It should be noted that, by being an owner, you can participate in the decisions of your community, volunteer in schools, and promote citizen behavior. Owning a home connects you with the rest of the people in your community.
Cons of buying a house:
Owning a home requires more responsibility. You have to pay for your own maintenance, or make the time to take care of any household projects yourself. In addition to this, a house is not a liquid asset. This means that, if you ever plan to sell your property, it may not be as quick of a process as you hoped.
You must also consider that, although you do not have to pay rent every month, property taxes may increase at any time. In some cases, depending on the economic situation, you may lose the value of your property over time instead of earning it.
There are other aspects you should take into account. For example, if you’re an adventurous person, homeownership might not be for you as it provides less mobility, and comes with a lot of commitments.
So which is better, renting or buying?
Although your budget plays the biggest role in deciding whether to buy or rent a home, it's not all about money. There are many other factors that go into deciding which is the best option for you. How long you plan to live in a certain place, your plans for the future, your career goals, etc., all have a place in your decision.
Just make sure whether or not you're willing to commit to the property long-term before making any decisions. If you think it's time to settle down and start a family, or build a career in a specific company or location, then you should consider buying.
If you still think there is so much more to see in this world, or if you are unsure of your career options, renting is most likely the best option for you as it gives you more flexibility.
We want to keep you company, and help you make the best decision.
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The contents in this section are provided for informational and educational purposes only and do not apply to all types of situations. The contents should not be construed as any type of advice or suggestion to take (or refrain from taking) any particular action, as it does not include or take into account all factors that may be relevant to your individual needs.