There are clear-cut differences between buying and renting a home. Renting means moving without penalties when lease time expires. The fundamental myth concerning renting means, you will throw away money monthly. When you rent space for living, you are aware of the amount you spend monthly paying up for space.
On the other hand, buying a home brings full ownership of the property, and as such, you are entitled to benefits. You comfortably live without a monthly rent fee; however, the general cost is higher compared to renting. Besides, you are entitled to the following expenses:
- Pool cleaning
- Tree trimming
- Pest control
- Property taxes
- Earthquake insurance
- Homeowners insurance
Advantages of buying a home
- High privacy levels
- Property appreciation and build equity
- Home pride ownership
- Improves stability
- Choice of location
- Solid investment
- Builds investor credit
- Modification freedom
- Cheap
- Stable monthly payments
Disadvantages
- Long-term financial commitment
- Subject to maintained costs such as fixing a broken toilet and furnace replacement, which can be expensive
- Mortgage payments are higher compared to rent
- Buying require down payment, closing costs and moving expense
Advantages of renting a home
- Financial flexibility and stability
- Career flexibility
- Low maintenance costs
- No market risks associated
- Indirect payment of taxes and insurance fee
- No outlay cash required
- Bills are inclusive of rent
- Decreased stress
- Less cleaning area
- Freedom to change neighbors at will
Disadvantages of renting a home
- Lack of personal choice such as decorating the home as per your choice
- Landlords may ignore taking responsibilities; therefore, renters end up living in harsh conditions
- Rent increase without involvement or notice
- Majority of places with renting houses are overcrowded. This is vulnerable to cases of insecurity, poor sanitation, noise, and diseases.
- Rental houses may not be available in your favorite places that you would like to stay with your family
This article sensitizes on the pros and cons of buying vs. renting a home. Read and make a decision today that is within your budget.