If you are stuck into deciding whether renting a home is better for you or buying? Let me tell you, you are not the first person to encounter this situation. Renting vs buying a home has been a hot debate for a long time. Although both choices have their pros and cons, the decision essentially depends upon a number of factors. visit renttoownreviews.com If you are looking for help so that you can consider all your options.
The year 2020 has been very different for the previous years. With the emergence of COVID-19, things have changed considerably around the world. Where the virus has affected so many health, it has also affected peoples’ jobs, way of spending and buying and selling markets. Similarly, the effect has also extended to the economic conditions.
Under these circumstances, choosing between renting or buying a home can be a big yet challenging decision. Where the year 2020 has come across volatility, it has also opened new opportunities for both buyers and renters. Here is a quick comparison that will help you in deciding between renting or buying a house:
Pros of buying a home
When you consider buying a house, you run all the possible benefits in your mind. Here is a quick list of all possible pros:
- First and foremost, the benefit of buying a home is NO landlord. You are the master of your own will, and there is no nagging of answering a landlord.
- When you buy a house, you can do whatever you want with it. You can paint the walls as you like, add in additional modern features and upgrade it just the way you want.
- Having a house helps you to build equity. It is an excellent investment for you in the longer run. It is an asset that helps you create wealth. You can even rent it out. This way, you will get both rental money, and your asset value will remain intact or even increase over time.
- Having a house means you can enjoy tax benefits. Tax laws have relaxed to a great extend for homeowners. Especially if you are selling your house, there will be no capital gain tax, and you can enjoy the profit.
- Having a home means stability for you and your kids. even when the times are difficult, you know you have a home.
- When compared to renting, owning a house can be cheaper in the longer run. Once you have paid all the mortgage or instalments, you’ll have a fantastic home. But that’s not the case in renting, as long as you are living in a house, you’ll have to pay the rent. There is no break ever.
Pros of renting a home
Where buying a house has many benefits; renting is not far behind in this regard. Since both have their benefits, the decision gets challenging for many. Here are some of the benefits of renting a house:
- For those who hate lengthy paper works, renting is probably the best option. It saves you from paperwork, and you’ll have a significantly less upfront cost. Furthermore, the only money you have to pay other than rent is the security deposited to the landlord.
- When you are renting a home, you are saving yourself from the property tax bills. Again, the only thing you have to worry about is the rent.
- Those you like to move around a lot, or whose job requires them to shift places, renting is a wise decision.
- When you are renting a home, you are not responsible for annual maintenance and repairs. So, you are free from worrying about maintenance costs and making repairs. It is the responsibility of the landlords.
- One of the biggest fears of homeowners is the falling value of the home. But when you are on rent, you don’t have to worry about this. In fact, you have nothing to do with the home value.
Now that we have looked into the benefits of buying or renting a house, let us take a quick look at the disadvantages of both.
Cons of buying
- Buying a house means loads and loads of paperwork. The paperwork is too much, and it can take a lot of your time.
- When buying a house, you’ll need to pay a considerable amount of money as a down payment. So, it means you have to lose a substantial amount and for many, saving that much amount can take months or even years.
- Value of a property is the most crucial factor when owning a home. If the value increases, it can add to the benefits of owners, but if, due to any reason, the value decreases, it can be catastrophic for the owners.
- If you think a mortgage is the only expenses when buying a home, you are wrong. There are several other expenses like annual property taxes, maintenance and repair expenses etc.
Cons of renting
- The most prominent disadvantage of renting is the fact that you don’t build any equity from the money. At the end of the day, you have nothing in your hands.
- Increase in rents is also a big challenge. Your landlord may decide to increase the rent or sale the property, and there is nothing you can do about it.
- Renting a home means a lot of shifting. Some landlords rent their houses for only a year. So, after a year, you have to move again. There is no stability.
- Renting a house means you have limited options. You might not like the location of your house or structure, but you still have to rent it due to limited choices.
Buying or renting a home depends on several factors. It depends upon the location of the house, its structure, the neighborhood and much more. It is never an easy decision and has its perks. But whatever you decide to do, remember to be happy and confident with it because a home is all about you and your peace of mind.