Compare Renting vs Buying | Which is better?
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What is better, to rent or buy? Vote and let us know in the comments!
When thinking about the important question of renting vs buying and which is better, it is essential to consider your own situation as a whole.
Age old question
Should I live in a rented house or buy a dwelling of my own?
Most face this question at some point while cruising through their 20s’ and 30s’ and indeed it is one that requires a lot of thought, given the economic uncertainty that has characterised the last decade or so.
Weighing pros and cons of each against the other is one of the ways by which this conundrum could be tackled and eventually solved.
Renting
One of the biggest plus points of living in a rented house is that you are free from the burden of maintenance since it is the owner’s headache to get things repaired and replaced.
The option of moving into a different locality for the sake of better facilities is always open because it is definitely easier to terminating a rental contract as opposed to selling your house. You are also cushioned against any depreciation that might impact the real estate sector. On the downside, it will mandatory to seek approval for any modifications within the premises and be prepared for a hike in rent without any prior warning.
Buying
If you decide to buy a house rather than rent one, it will act as an investment which in turn will also provide stability in terms of knowing you own a piece of property under your own name.
Being the owner, you can alter at will and need not be concerned about accommodation post retirement. Of course maintenance will be an issue and value of the property could cause worry during recessionary times.
Basically buying a house implies acquiring a permanent asset and hence must fit in with your financial situation as also future plans. Calculating all the involved costs is an important aspect followed by determining how long you intend to stay in the particular locale and whether it is worth settling down there once and for all.
Which do you think is better, buying or renting?
When I grew up I was always told to buy a house it’s better than renting. Yes it is after all a very good investment and it would be yours after all the years you have paid it, but in the financial times we live it today it seems to me that renting is a better option. Out of all my friends and people I know I have a handful that owns their own houses. In one scenario now my friend urgently need to sell his house because of his financial situation. The house has been in the market for months now, and after 2 failed offers he is in a very bad situation. Because he is the owner of the house, the rates and taxes are also in his name meaning he is just getting into bigger and bigger problems. He had to spend a great deal of money to get the house ready to put on the market. If they were renting they would have paid their electricity and the water they used. If they no longer could afford the house they could have given a month notice and looked for an affordable place. They would not have had all the overhead they have now and they might have been in a better position. My opinion is to rent is a better option – if your situation changes with the owners you can move. If the rent becomes to much you can get something that fits your pocket. You don’t have to pay rates and taxes, a bond, maintenance or insurance.