If You Are Thinking About RENTING Or BUYING, this blog will help you choose one! It’s what most realtors won’t tell you, so let’s find out which is better: buying or renting.
Many people have had a very long debate: Renting a house or buying a house. Since a lot of people choose any one thing based only on saving as much money as possible, but there are many other factors that you should consider before you decide upon renting or buying a house.
Today, I’ll be discussing and sharing with you some important factors in deciding which option is the best option for you.
The first factor is the difference in price. When you’re renting a house, you’re not paying for the house itself, but instead, you’re paying for the right to use the house for a certain period. The landlord or owner of the house still remains the owner of the property.
On the other hand, when you buy a house, you are purchasing the property itself. You will be the legal owner of the house and will have full rights to do whatever you want with it. There are many benefits to renting a house over buying one. One of the major benefits is that you can rent out your house while you are away on vacation or travelling. Also, if you need to move because of a job change or something similar, you can rent out your current home and move into a new one for free.
There will be a difference in how much you have to pay for renting and buying. You need to secure your finances for buying a house, whereas the rent amount is a smaller monthly payment.
The second factor is flexibility. When you’re renting a house, you usually have a lease agreement which states how long you can stay in the property. This means there is less flexibility compared to owning your own house. You’ll be restricted in your own house from doing certain things. You will have to ask for permission from the owner to make any changes to the house.
If you decide to buy a house, you can stay in it for as long as you want and even sell it or rent it out whenever you want. Since you’re going to be the owner himself, you don’t have to worry about being answerable to someone else. You can do anything, make changes, add new things, etc. There is a lot more flexibility when you own your own house.
The third factor is maintenance and repairs. When you’re renting a house, the landlord is responsible for all the maintenance and repairs of the property. However, if you own your own house, you will be responsible for all the maintenance and repairs yourself.
When living in a rented house, you have to report the maintenance and repairs to the owner, who will then fix it and pay for it. But remember, the owner will not pay charges for fixtures you caused, for example if you broke something that belonged to the owner.
If you’re living in your own house, you’re responsible for taking care of the house.
This can be a pro or a con depending on how handy you are and how much money you’re willing to spend on maintaining your property.
Fourth factor: the costs involved. When you’re renting a house, the only cost involved is your monthly rent. After paying your rent, you don’t have to worry about paying any other expenses related to the house.
However, when you buy a house, many other costs are involved, such as the down payment, mortgage, insurance, taxes, etc. It’s your responsibility to ensure that these payments are made from time to time.
You must be prepared to pay all these additional costs if you’re planning to buy a house. The good news is that with home loans available today, it is possible to purchase a home without taking out any loans, and you can use part of your income to pay these costs!
The fifth factor in the security deposit, When you’re renting a house, the landlord will usually ask for a security deposit refundable if you don’t damage the property. However, when you buy a house, there is no security deposit required.
If a tenant breaks something in your home that isn’t covered by the insurance policy you purchased or if there are other damages (like water damage), you will have to pay for those repairs and deduct them from your monthly rent payment. This can be expensive if you have many tenants over time.
When buying a home, it’s important to know how much money you will need to save up before closing on your new home. If you plan on living in the home for several years before selling it, it may make sense to put 20% down and borrow 80% of the purchase price instead of 10% down and 90% of the purchase price (which is what most people do). Doing this gives you more flexibility regarding how much money is available for repairs or improvements down the road without having to sell your current home first.
These are some of the important factors that you should consider before deciding whether to rent or buy a house. Buying gives you the freedom of living in your house without worrying about any authority; you have to pay the charges and also the huge buying amount. In renting, you only pay the monthly rent, the owner is in control of changes in the house, etc. both are great options; you just have to see which fits your budget and lifestyle the best.
Weigh all these factors carefully and make the best decision for yourself.
