Buying Vs. Renting a House
By Sadiya Anjum
Are you confused? Rent a house or buy one? Its an important question that will affect your life big time and while we can't provide the right answer, we can throw some light on the various advantages and disadvantages of renting and buying. This will help you consider issues you may have overlooked while racking your brain.
Renting a house is probably the easier thing to do with regard to finances. The security deposit won't be a huge sum and budgeting will be easier when you know how much rent should be paid monthly. Plus you don't have to worry about loss of investment if the value of the property depreciates. Moving-in costs will be minimized as appliances and utilities maybe provided for by the landlord. Apart from the money bit, amenities like pool facilities, tennis courts, laundry facilities etc. maybe available. You will have fewer responsibilities as the landlord may take care of repairs and maintenance. If after moving in you hate the neighborhood, you can always pack up and leave. There's always the can-get-out option. If you also travel a lot, then it is convenient as security maybe provided for.
It all sounds good no doubt, but what if your landlord keeps tabs on your every movement? Making changes around the house may not be an option. There will be more restrictions than you can imagine from pet ownership, noise level to smoking etc. You will also have less space for the amount of money you are actually paying and you won't be able to gain from the rise in value of the property. Also there are no tax deductions when it comes to renting. Very importantly, after a period of time you will have to shift and this maybe a tedious task not to mention distressing if you have fond memories of the house.
So to have something to call your own at the end of the day- should you buy a house? May be, as owning a house can be satisfactory and will give you a sense of pride. Financially, you will be privileged with special tax deductions and the house is an investment – a form of savings. Monthly payments will remain reasonably constant giving you the chance to plan your finances. What's more - if the property increases in value, you've hit the jackpot. Besides, owning a home will provide security – after you retire or as collateral for emergency loans. A house that is your home will mean a lot of freedom – to make changes, improvements and decorate as you wish. It will provide you and your family (especially children) with a sense of belonging.
Undoubtedly owning a home can be satisfactory but it isn't hassle free. Buying a house is a huge commitment in terms of time, money and effort. Even if you can pay the substantial down payment now, do you have job security for the next few years to be able to clear your mortgage? Money for insurance, maintenance and repairs must be set aside. After deducting that amount, see if you can manage your other expenses with your income. At some point property taxes may shoot up. Also if the property does depreciate in value, chances for resale are minimized. An unexpected reduction in income may leave you in a soup. Maintenance and repairs not only require money but time and effort. If you travel a lot, security may pose to be a problem unless you can afford to hire someone. When the children grow up and leave, the house may be too big for you.
The above highlight issues that you seriously need to consider whether you are renting or buying a house. One is not advantageous over the other – this is a matter of personal opinion, values and needs. Firstly analyze what you want from a house, what it means to you and your family, your activities that influence the kind of house you stay in (eg. travel, entertain a lot), your commitment to owning a house, and where you see yourself a couple of years down the line. Hopefully answers to these questions will help you decide better.
Article Source: ChoiceOfHomes.com - Home Selling and Home Renting made easy.This article may NOT be reprinted in any form without the express written consent of ChoiceOfHomes.com
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