Everything You Need to Know About Buying Vs Renting a Home
To buy or not to buy…that is the question!
Have you ever questioned the positives and negatives of buying vs renting a home? I know I have. How to rent or purchase a house isn’t something we get taught in school, so we pretty much have to learn everything ourselves.
Therefore, I have thought of everything you need to know about buying vs renting a house to provide you with all of the information that you need to decide which method is right for you!
Pros of buying a house
- Houses increase in value therefore once you have paid off some of the mortgage you can use the equity in your home to help buy a bigger home. Check out my blog post ‘7 Reasons Why You Should Live in a Modest Home‘.
- You can spend money on improving and decorating your home without having to ask a landlord for permission
- There is more security in buying than renting as you own your home therefore cannot be evicted unless you do not keep up with your mortgage repayments
- Payments are more predictable and more stable than renting
- There is pride in home ownership
- Once you have paid off the mortgage, the home will be yours
- Some rented accomodations do not allow pets, but if you own you can have as many pets as you want
Cons of buying a house
- Buying a house is a long term financial commitment
- You are responsible for all of the maintenance and repairs your home requires
- Buying a home requires a large deposit
- There is a lack of flexibility that comes with buying a home
- When the interest rates rise, your mortgage repayments increase
- It may not be easy to sell your home when you need to
Pros of renting a house
- Renting a home can work out cheaper
- You have more flexibility when you rent as you can choose the length of your lease
- Your landlord is responsible for paying for nearly all maintenance and repair work on the property
- Low move in costs
Cons of renting a house
- No fixed housing costs
- You have to ask for the landlord’s approval before making changes to the property
- Monthly rent payments may increase out of the blue
- Renting will not help to increase your credit score
- Landlords usually don’t make cosmetic upgrades therefore rented properties can be outdated