One important question that might have come to the mind of many of you is whether it is better to buy or rent a house. Both buying and renting a house have certain benefits and drawbacks. Which option is better depends on various factors such as your own financial situation and the state of housing. Though apparently, owning a home looks like a better option but sometimes renting can also be a better choice. Here we discuss about the points in favor of owning and renting a house.
Points in favor of buying
• One important advantage of buying a house is that here you are able to build ownership in the house. If you stay in a rented house, you pay rents in every month but you do not attain ownership rights in the house. However, if you take out a home mortgage loan, then with every monthly mortgage payments, you build up equity in the house.
• If you are an owner of a house, then you have the creative liberty to paint, model, design, change your house on your own wish.
• The property taxes and the mortgage interest can be deducted so as to take the benefits of tax deductions.
• It is indeed very much fulfilling and satisfying to become the proud owner of your own house. In fact, this is the ultimate dream of many of you.
Points in favor of renting
• If you stay at a rented house, then you are required to pay rent at a regular basis. However, in case you purchase a house with the help of a mortgage loan, then you are required to pay a large down payment, closing costs, and all the associated fees for home inspection and other related things.
• The money that is required for making down payment can be used for making other investments. In fact, you can invest that money in the stock market and obtain better returns. However, there are risks involved in investing money in the stock market.
• It may be the case that you will have to move to a new place in the near future. In such case, making a big investment of owning a house may not be a wise decision. In such case, it would be wise to stay at a rented house.
• You may be in a profession where your future income is uncertain. There may be a pay hike or a pay cut in the near future. In such situation, renting a house would be a better option for you.
• In case of renting, you don’t have to bother about the maintenance costs. Responsibility of maintenance will rests on the landlord.
It is indeed a tough choice whether to buy a house to a rent a house. Both renting and buying a house have certain benefits and drawbacks. Depending on your requirements, income, priorities and many other considerations, you have to decide which one is the better option for you.