One of the questions that always occupies the minds of home seekers is whether buying a home is cheaper or renting it. This question becomes especially important in the current market conditions where the purchasing power of housing has sharply decreased and on the other hand, relocation and maintenance costs have increased.
The short answer to this question is that sometimes renting is more reasonable and affordable due to more flexibility and lower maintenance costs. For years, the path and reason for becoming a homeowner have been fixed for tenants. In other words, owning a house instead of renting a house has become one of the dreams of people’s lives.
If the house is for yourself, you are free to make different changes. But in a rented house, you must have the landlord’s permission to make the changes. Besides, some homeowners have other ailments and sensitivities.
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However, renting an apartment or house will make it easier for you to relocate if you are dissatisfied or for any other reason. These cases have caused the rental market to be hotter than ever and people prefer renting to buy a house. We will explain the benefits of buying a house and renting it in the following …
Pros of renting a house:
- Mortgage versus rent:
This choice is a little more challenging. Part of the loan you take out to buy a home has to be used to pay interest every month, which is why loan repayments are usually long. But renting has more flexibility, and by changing the circumstances you can change the rented house, and the option of paying less rent by living in cheaper houses is always available to you.
- Freedom vs. Liability:
When you buy a home, your responsibilities become heavier. Everything else related to the house is under your responsibility: roof repair, painting, plumbing, and so on. But by renting a house, all these responsibilities will be removed from you and will be on the landlord. If you can hardly match the budget needed to buy a home and can not afford any additional expenses, it is better to think about renting. The legal responsibilities of the home are also with the landlord, and these freedoms can add to the rental benefits.
However, each option has its advantages and disadvantages. You can think of any option depending on your taste and budget.
- Easy to move:
When you shop at home at a young age, you become somewhat dependent on that area. As a result, moving to another location or city will make it more difficult for you to find a better job because the process of selling your current home and finding a new one will be very difficult and time-consuming.
In such cases, renting is an advantage because you can terminate your contract in the shortest possible time and find a new home. Also, if for any reason you need a bigger or newer house, you can make your decision much easier.
- Easier division of property:
Single people often have different reasons for renting instead of buying a home. But in married people, in cases such as divorce and similar problems, the legal complexity of the division of property is reduced. This is also true in cases such as death and inheritance monopoly.
- Difficulties in selling a home:
People who want to sell their property, especially in the recession of recent years, are certainly familiar with the difficult process of finding a customer. Many people have been selling their property for years, not just weeks and months, but still have not been able to find the customer they are looking for.
Experience has shown that an owner that has not been able to find a customer to sell in this situation can not even succeed in finding a tenant, so you may face an empty house for years for which there is no customer and no tenant from which you can earn money.
- Renting and spending less:
Although some financial experts believe that renting, even with the addition of maintenance costs, is still more expensive than buying a home, others emphasize that renting is a cheaper decision.
But to be honest, both categories are right, and this is an intermediate decision. In any case, renting also depends on the place you choose. In some cities, such as metropolitan areas, renting is cheaper, while in smaller cities, buying a home is a more sensible decision.
- Easier decision-making:
If you are older, married, or have children, becoming a housewife is naturally the best option. In any case, becoming a housewife is one of the stages of puberty, even if you are not financially or mentally ready to go under.
It does not matter what the numbers say, you can only think that if you can not afford to pay heavy rents at any time, you can easily terminate your contract and find a better home.
Positive points in buying a house:
- You have complete freedom to decide:
When you own a home, you can make the changes you want at any time
Make the decoration to your taste and change the color of the walls to any color you want. You can live without worries for years and not worry about moving and relocating. You have the right to take care of the animals and you can decide for your life more freely.
- You are safe from inflation and rising prices:
When a house deed is written in your name, you are away from all the increase in prices and inflation until the moment you own it because you have a home to live in and capital.
- You will be relieved from paying extra fees:
By buying a home, you are allowing yourself to spend your monthly rent on a mortgage.
By doing this, you will save a certain amount per month and at the end of the year, you will see savings with a high amount.
- Maintaining peace of mind:
When you live in a home that you own, you avoid stress and stresses such as rent, furniture, inflation, and rising annual prices.
And if the price of a house goes up, you have a safe investment to make a living.
In general, buying a home can protect you from stress and rising inflation and prices.
As we said before, in some cases renting is better than buying a house, and buying a house makes you dependent on a place and makes it even harder to sell. These issues may deprive you of more ideal job and life opportunities. In such cases, renting means that wherever you are in the city, you will have more flexibility in making decisions.
In general, as a final point, buying or renting a house is a completely personal decision and will vary according to the circumstances of the people and their priorities. As a result, always consider the general conditions and buy or rent with the right decision. What experiences have you had during your life of renting or owning a home? Share your experiences with us.
“If you have any feedback about is it better to rent or buy a house that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”
NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.