Having a roof over head is the prime necessity of human life but before planning to rent a house or buy a property, there are a number of concerns that are encountered by adults at one point or another. Although, the gulf between renting and buying is contracting, yet with unstable mortgage rates and increasing rents in USA, there seems no right answer about whether to rent or buy a house.
Here are presented a few consideration about Renting Vs. Buying choices to facilitate you making the right decision.
Advantages of Renting
I’m bored, let’s relocate our house!
Buying a property, unlike renting, is a long term commitment and if a decision is not well thought of before buying the property, you are stuck with it like a marital bound. Whereas, renting a house saves you from these lifelong promises, allowing you to move around as and when needed in accordance to your job requirements. Moreover, having a house as a tenant allows you to afford places where you can’t imagine to build a home.
Toilet service, please!
From a renter’s mind, it is a huge relief that a broken toilet or a leaking pipe is no more your concern. It is like those 5-star motels’ luxuries; you just call the landlord and it is no more your responsibility. How wonderful a relief is that that your house’s appearance fixing is on someone else!
Disadvantages of Renting
Renter’s rights do not work all the time
No matter how alluring it is to have a landlord fixing around your house, the world is full of bad landlords. It is not so rare that the landlord does not pay heed to our miseries or delay the fixes. Although, there are rental rights, who wants to make things messy with his landlord unless you have it planned to relocate in near future?
It is a high possibility that your landlord will not allow you to have any exterior alterations because of huge turnout of renters at the place. This means you may not have a personalized feel of your home, no wall colors, no paintings, just the house as-is.
Unpredictable housing costs
The housing costs are not as stable for the renters as they are for the landlords. The rent may increase annually. Also, you will not be able to deduct any of your housing expenses where the landlords can cut their mortgage payments from federal income tax.
Advantages Of Buying
Potential growth in personal wealth
Owning a house brings not only the physical assurance of a roof in rainy seasons but the freedom to self-décor, personalized view, and growth in personal wealth. At an average home values rise from 4% to 6% annually that promises a good profit if you decide to sale. Moreover, even if you decide to leave the place soon after buying, you can always put it for rent rather than selling and keep with your mortgage payments through the rental sums.
Stable housing payments
Choosing a fixed-mortgage rate promises long term stability of housing and interest payments. The costs are predictable, allowing you to keep full track of your budgets and billings. Of course, property taxes and insurances will keep fluctuating.
Disadvantages of Buying
Due to fluctuating economic conditions and varying desirable states of a certain location, it is very much possible that your resale will cause you to lose money rather than earning a profit. Not only this, but you also have to keep a separate budget to accommodate uncalled for emergencies and necessary repairs regarding your house maintenance. Property taxes can rise anytime of the year, making it difficult to handle affordability.
As compared to tenants, a house owner encounters a number of problems in switching places on a short-term basis. Community bounds and friendly ties may make you feel homesick and depressed for a number of days to come.
After reading the above mentioned points, you must have deduced that owning a house, though being the most common American dream, is not the safest option, nor is renting. The decision must be a function of rigidity of your future plans, inflation rate of rental prices, average maintenance costs of owning a house, and appreciation predictions.