Renting vs. Buying – Which is the Better Option?
Renting or buying a home is a debate that can go on forever. Some feel it is not wise to purchase a home and get tied down financially while others support the notion that renting places endlessly is not a smart decision in the long run, especially if you have a family to support.
Looking at it from dual perspective
Let us consider it from both angles – say you have lived in rented apartments, houses, lofts etc, for a long time, but have managed to save quite a bit. Depending upon the state of the financial market, you can choose to invest in a property, especially if you wish to settle down in one particular place. Retirees often find this option convenient since they don’t really want to move out for a while. On the other hand if you choose to rent a house, you don’t have to make a down payment or worry about mortgages and things like that. All you have to do is negotiate the lease agreement properly and keep renewing when the contract gets over.
Advantages of renting and buying
Although both options have their pros and cons, we will talk about the benefits only.
As mentioned before, the process ends after the lease is signed. Take a look:
- You don’t have to worry about selling off the house or apartment at a later date if you wish to move. This eliminates the hassle of finding a buyer who can offer a suitable price for your home.
- Issues such as plumbing problems, loose fixtures, faulty lighting etc. will be taken care of by the landlord or building supervisor.
- In the initial rent payment, many amenities and utilities might be covered for you, thus cutting out additional charges. However, this depends upon where you rent.
- Lawn care is handled by the landlord too.
Purchasing a home has the following advantages:
- There are no monthly or yearly payments involved since you are buying the property and you just have to focus on paying off the price. It brings you a step closer to owning a property rather than investing in a place you might have to leave.
- You can redecorate it as per your wish without limitations. Paint a wall with a different color, add accents, change the layout of the house, experiment in the garden – you don’t have to worry about restrictions.
- You might be able to reap some tax benefits. For instance, if you consider purchasing a historical home, there are tax breaks provided on restoration.
The best way to make up your mind is to take into account the finances you have at disposal and enter the data into a reliable calculator that can generate the final figures for you.