The idea of moving into a new place can make a person wonder if they should go on renting or take the leap to owning their own home. Both of these options have their own pros and cons based on your financial situation and other needs.
When Is Renting the Best Solution?
Depending on your situation, renting can have real advantages over owning a property. Renting provides a suitable option for many of the newbies who just have become independent and can’t afford to gather the high down payments necessary for a home.
While you are renting, you don’t have to bother about paying property taxes (which can cost quite a lot). And there are other expenses you don’t have to worry about too, particularly unexpected ones. Whether the air-conditioning needs maintenance or the roof starts leaking for any arbitrary reason, it’s generally the landlord’s responsibility.
Renting also gives you a pass on the high mortgage costs necessary for buying a home. That doesn’t mean that renting is necessarily cheaper than paying a mortgage; because a mortgage pays off your debt on a property, it’s often a better investment over time. Ultimately, flexibility about time and location is a rental’s biggest asset.
And When Is It Better to Own?
While renting has it pros, it’s not the best solution for everyone. Owning a property comes with a powerful plus: you own all the rights to that property. While you still have to pay those big mortgage costs, you can do whatever you want within your premises. You don’t have to depend on anyone else for permission to renovate or update whatever pieces of the house you like.
Home ownership is also an important dream for many, making it a major accomplishment for both individuals and families. In addition to the great feeling of having space that is completely yours, a home also provides you with an option to make money. It’s always easy to rent out a spare part of your house or even a patch of your garden for others to grow some veggies of their own. And don’t forget selling! If you’ve bought in the right place and choose your moment carefully, you can make a tidy profit selling your home. A trained real estate agent can help you understand your options.
You also have more security when you own your own home; no one can force you to move at the end of your lease. Once you know you can commit to an area for a long period of time, owning a home is an important investment in your family and community.
Renting a place is often a more accessible choice, but owning is a much better option if you are economically sound enough to gather the down payment. Thus, if you are going back and forth between renting or buying a property, it’s always better to buy one considering the long term benefits.