Buying Vs Renting: To Rent or To Purchase a Home with Loan?

For many owning a home is a lifetime achievement but for some owning a home is a lifetime commitment which is not worth doing.  Considering the amount of money that needs to be put into real estate any one who is short of funds will have a second thought as to buy or rent. Both have their advantages and disadvantages. Let us find out in this  article about which is the right choice, buying or renting. 

Renting a HOME- Pros

No Home Loans

8 out of 10 home purchases are done with the assistance of banks. People tend to take a huge loan for home purchase and get stuck in it for a long period of time.  This is one of the reasons most people who are short of funds rent a home. They don’t want the hassle of emi payments every month.

No Maintenance Costs

One of the advantages of renting a home is that there are no repair fees and maintenance costs which means when you rent a home, your owner takes full responsibility for all upgrades, repairs, and Maintenance.

For example, If your roof leaks or a device stops working, you call the owner to have it repaired or replaced. On the other hand, the homeowners are fully responsible for the renovation and home repair costs. Depending upon the renovation or other tasks, it can be quite expensive.

No Real Estate Taxes

Real Estate Taxes are one of the major problems for homeowners, but the renters do not pay the taxes. Because the owners pay the property taxes and the taxes vary from one country to another country. In some parts, the costs associated with property taxes can be in the thousands of dollars each year.

No Down Payment

Tenants generally have to pay a security deposit equal to one month’s rent. If they do not damage the rental property, this deposit amount will be refunded to them. When buying a home with a mortgage, you have to pay a substantial down payment — usually about 20% of the value of the property, But renters do not pay the down payment. 

Fixed Rent Amount

The amount you pay in rent is fixed for the term of the lease agreement. If the landlord wants to increase the rent, they must provide a notice to the renters.

No Property Tax

Once in a while the government may increase property taxes, but as a tenant you don’t have to worry about it.


Why Buying a Home is Better?

No Landlord issues 

Now that you have read the advantage of renting a home, here is the major disadvantage. You will have to deal with another human who may find faults at your way of home maintenance and you will not have the 100% freedom to do whatever you want. This is the major disadvantage of renting a home.

All the people who buy a home, buy for the level of freedom they can achieve by owning it. And no matter what, you can’t get that level of freedom and peace of mind in a rented home.

Owning a home can benefit homeowners in the long run instead of paying rent for a long period of time.

You can choose to either or buy a home based on your current financial situation. Always try to buy, if you have the finance available for it.

Buying Vs Renting: To Rent or To Purchase a Home with Loan?
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