Renting vs. Owning, what is the right option for you? Many of us will agree that it’s our dream to purchase our own home, get rid of dealing with a landlord, moving, and having to decorate every new rental property accordingly. However, buying a house entails a huge investment and may not be an apt option for everyone.
Renting Vs. Owning – What’s Right For You?
Let’s explore the pros and cons of renting vs. owning a home.
Should You Rent?
Renting has the following benefits
There’s a lesser financial commitment, although a security deposit is required when renting.
No maintenance cost
You can always change locations easily if need be and rent a property that is closer to your workplace. There’s greater flexibility involved in renting than owning a home.
Cons of Renting a House
There’s no investment, i.e., no equity, which you could use later. Also, there’s a level of uncertainty. You never know when the landlord may ask you to move out. The cost of your rent could increase, which may be impacted by real estate prices. You cannot make any alterations or modifications to the house as you wish.
Should You Own?
Benefits of buying your own house
Your mortgage payments lead to equity, which you can always use in the future to take out a new loan or buy a new property. The biggest motivation is, you always have a roof over your head! You don’t need to worry about a pestering landlord. Also, you can renovate the house as you wish and earn revenue by renting the property.
Cons of buying your house
You need to have a steady income, savings, and a good credit score to buy a house as it entails a huge investment.
Buying a house is not an easy process; you need to think about various parameters before purchasing a home. There’s lesser flexibility involved. If you need to move to a different location, you will have to sell or rent your property. Also, there are maintenance costs to consider when owning a home.
If you’re keen on buying a home, Drew Mortgage Associates can offer you the right consultancy services, which will help you shop for a house loan that will suit your requirements. Whether buying a house is the right decision for you, it requires detailed analysis of your finances and liabilities. Maintaining a healthy credit score is pivotal before you shop for a loan.