Rental or Buying a House: Which is the better solution?
Homeownership is an integral part of the American Dream. However, there are many other factors to consider when deciding whether to buy or rent a house. Explore both options and make an educated decision based on your goals and needs.
For most of us, home is the single most expensive investment. So it's understandable why many people are worried about whether to rent or buy. What's the best option for you? Here are some things to consider before making your decision.
The Commitment of a Home
Buying a house is a major commitment, no matter how it is looked at. You have to find a home that will suit your needs and budget, then wait for the perfect time to buy, all the while making sure you can afford the payments. On top of that, you have to put down money for the deposit and closing costs.
Choosing Between Renting and Buying a House
Renting can be cheaper than buying in the short term. However, over the long term, owning a home can save you money. Renters must spend thousands on rent while owners can put that money into their mortgage and reap the benefits of appreciation when they sell. The trade-off for this is that homeowners have a fixed monthly payment that will never go down, even if their wages remain stagnant. Renters will see their housing expenses fluctuate with income, inflation, and demand for rental property.
Buying a House
Buying a house has more obligations; security and freedom come in handy for you than for someone who decides to rent a townhouse. The good thing with buying a house is that you can decide on adjustments since it's a long-term commitment. If you have children or planning on having them, it's easier to build a playground for them or turn your backyard into that cozy, relaxing spot. On top of that, in most cases, you are not limited by the rules of a homeowners’ association. You can put a trampoline in your yard, have a garden of your dream, play with your dog as much as you want, make any changes to the interior and exterior design of your house (in some cases permits by the local villages are still needed). Owning a house basically gives you much more freedom.
Renting Can Be Expensive
It may seem like it would be easier to rent an apartment, so you won't have to worry about upkeep or to save up for a big purchase. But, renting also comes with its responsibilities. It's not just rent payments on time - you also need to know how much your landlord will charge you in case of any damage.
Bottom Line
Owning your home is by far a much better solution compared to renting a house, with its pros outweighing the latter. Ideally, the process of buying a house may seem daunting at first, but it's worth it.
