Finding a house to live can come with many questions. While making a decision, a question that can arise is whether buying a house or renting one is a better option. Renting and buying both have their own advantages and disadvantages. Here is a list of pros and cons of renting or buying a home which sure can help decide better on your options.
Pros of Renting:
- Renting is cheaper than buying a house. Also, you have no responsibility for maintaining the rented area as the landlord will do all the repairs and maintenance of the property.
- Renting gives more flexibility and freedom. For people working or travelling frequently, renting a house is the best decision as there won’t be any responsibility of maintaining the property.
Cons of Renting:
- Your landlord can increase the rent at any time.
- If you’re renting a property, you cannot build equity. It can be your home, but it can’t be your asset.
- Renting a property gives no tax benefits.
- Changes or renovation to the rented house or apartment is not possible without the landlord’s approval.
- You are bound by the rules and obligations in your lease agreement
Pros of Buying:
- Owning a house gives a feeling of stability and settlement and also your own privacy.
- Any renovation of the property is possible as you are the owner.
- Buying a house can serve as an investment. You can rent it out to earn monthly profits.
- Tax benefits. You can deduct your mortgage interest payment. Also, equity is built while paying off the loan.
Cons of Buying:
- Buying a house is much more expensive compared to renting one. Also, there are maintenance costs involved.
- Although you might save on the expense of paying rent every month, property taxes can go up.
- A house is not a liquid asset. Therefore, selling your property may not be as quick of a process as you expect.
Money plays the most important role while deciding whether to buy or rent a home. However, there are many other factors like how long you plan to live in a certain location, plans for the future, etc., that can play a role in your decision.