One of the biggest decisions a person can make in their life is whether to buy the property or to rent it. This is one of the many things that do not have a yes or no answer. Buying or renting a house depends on many factors. This decision depends on the current market value of real estate projects along with your personal financial situation. Renting a house has its own pros and cons just like how buying a house does. There are several factors that should be taken into consideration when buying or renting a house, such as the budget, period of stay in the area, long-term personal goals, etc. Once these things are figured out, the final decision to buy or rent can easily be made.
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Renting a place seems like the easier and cheaper option for most of today’s youth. However, renting comes with its own advantages and disadvantages. One main advantage of renting is the cost of the rent. Youngsters find it easy to live in an apartment with several others in order to divide the rent as compared to saving up money to buy a house.
Other benefits to renting a place are:
- More opportunities; Renting an apartment or house in a posh area is more of a possibility than buying
- Less paperwork: Renters don’t have to trouble themselves with the hassle of paperwork other than a tenant agreement.
- Less Maintenance cost: Most maintenances are the responsibility of the homeowner and not the renter
- Property tax: The property and insurance tax are only paid by the homeowners.
- Flexibility: Renting gives the freedom to move anytime with only providing short notice.
Although there are many advantages to renting, it also has disadvantages such as:
- No Stability: Landlords have the right to kick renters out anytime they want and there is no guarantee if they will renew the agreement or not
- Lack of Equity: No matter how much rent you pay, you cannot claim the property.
- Limitations: Renters cannot remodel or renovate the house on their own or have the freedom to do whatever they want to.
- Rent increments: Rents increase each year, sometimes forcing you to look for cheaper options
- Moving expenses: The biggest con of renting is always having to pay high fees to movers.
Buying a house
When looking for a long-term investment, most people prefer buying a house as its market value is sure to increase in the future. It is one of the biggest achievements one can have however you cannot buy a house just like that.
Some advantages to buying a house include:
- Proprietary rights: The biggest advantage of buying a house is that it will be under your ownership. Purchasing a house is the best investment one can make.
- No limitations: Owning a place of your own gives one the freedom to do as they please
- Generating income: If you own a house with extra rooms, you can always put them up for rent.
- Security: Owning your house gives you stability as no one can force you out of it
Despite the many advantages, owning a house comes with its own disadvantages like:
- Financial Stability: Purchasing a house requires a large sum of money. The option to buy on installments also requires the investor to pay some amount upfront as a down payment.
- Value depreciation: With time, property value decreases unless the house is renovated every now and then.
- Maintaining and repairing: Repairing a house requires a lot of money and if not done on time, can make the damage even worse.
- No flexibility: While renters can leave any time they want, moving from a house requires a lot of time and is not that easy.
Whether you are buying an apartment or a house or looking for a place to rent out, there will always be advantages and disadvantages. In the end, the decision to buy or rent depends solely on the person who is investing. If an investor has their goals and finances sorted, then it’s better to buy a house for the long run. If not, then renting a place is probably the best option.
Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in the NextGen Marketing | Nova City Islamabad. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.