Real Estate The Pros & Cons Of Renting Vs. Buying A House

The Pros & Cons Of Renting Vs. Buying A House

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Every individual dreams of owning a house. Everyone seeks answers to a question that comes to mind of the majority of the population: to own a house or to take it on rent. Whichever option you opt for depends entirely on your financial health, lifestyle, and personal choice. B

Renting a property requires lesser responsibilities and more flexibility than homeownership as you aren’t necessarily stuck down to your property. Being a Homeowner requires a regular cost—initially for the down payment and over the long run (EMIs in case of a loan). 

PROS OF OWNING A HOME

  • You can enjoy privacy
  • Value Enhancement
  • In the case of Home loans, EMIs(fixed rates of interest) are stable
  • Tax Benefits available
  • Pride owner of a home
  • Easy Remodelling
  • Create wealth for the future

CONS OF OWNING A HOME

  • Financial obligation (Long-term)
  • All Maintenance Expenses
  • Surrounding community ties like Orion One32
  • High EMIs compared to lesser rent payments.
  • Requirement of Initial Payment, Foreclosure costs
  • A new house’s Value may not increase during the initial years
  • Easy Relocation is not possible
  • Commuting time if your job is far away

PROS OF RENTING A HOME

  • Lesser payments compared to a house payment
  • Easy Relocation in case of any such situation arises
  • No Maintenance and repairs cost are involved
  • Credit requirements are less strict
  • Pros of Renting:

    • You get more flexibility and freedom. You can make a quick decision to move out, especially if you have a month-to-month lease.
    • You have no responsibility to maintain the rented area. You can tell your landlord, and he or she will do all the repairs and maintenance for you.
    • Renting may be cheaper than owning a house. Also, because you aren’t footing the bill for repairs or maintenance, you know exactly how much you will be spending at the end of the month.
    • If you work or travel frequently, then renting a house or an apartment is the best decision as you won’t have to burden yourself with the responsibility of maintaining the property.

CONS OF RENTING 

  • Your landlord can increase the rent at any time.
  • You cannot build equity if you’re renting a property. It will be your home, but it won’t be your asset.
  • There are no tax benefits to renting a property.
  • You cannot make any changes to your house or your apartment without your landlord’s approval.
  • Many houses available for rent have a “No Pets” policy. So if you’re an animal lover, finding a place to rent that allows pets can be hectic.
  • Your landlord can evict you at any time. He/ She can put the property up for sale to make a profit if real estate values increase.
  • Rent
  • Utility costs (like free water, Inverter facility, Beddings) for an additional savings

HOME

  • Tax deductions are not available
  • Increase in Rent (year after year)
  • No creation of asset
  • Difficulty faced in having pets
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