Buying vs Renting: How do they compare?
When you need a house to stay in, you have two options. One is to buy a house, so you own it. The other is to rent a house and pay a monthly rental. Both these options have their pros and cons. It is important to review the pros and cons thoroughly before deciding.
To make your work easier, we have made a detailed comparison between buying and renting homes. Go through the comparison and decide which of the two options suits your needs.
Buying a home
When you buy a home, you own it. The home belongs to you, and you can use it as you wish. You can choose to stay in out or let it out. Anytime you wish, you can make modifications to the house. You can sell it at any time because you are the absolute owner of the house.
Buying a home is expensive. You need to put at least 20% of the home value as down payment. You then need to make the mortgage payments every month for many years. Failure to make the payment can result in losing the possession of your home. When you buy a home, there are many taxes and fees to be paid. But you can earn from the home by renting it out or selling it when its value appreciates.
Renting a home
A rented home does not belong to you. It belongs to someone, and you are staying in it for a specific time. Every month you need to pay the rent. You cannot make any changes in the home without the owner’s permission. Renting is cheaper, and you can change homes any time. However, you will never have a home that is yours.
Buying vs. renting: a comparison
- Owning gives you stability, you have a home to stay for the rest of your life. A rented home does not belong to you and there is no stability or a feeling of ownership.
- When you own a home, you have to stay in it since you have invested so much. Renting a home gives you flexibility. You can change homes once the rent or lease period ends.
- Owning a home is expensive, it costs big money. You have to make the mortgage payment every month, else you will lose your home. Rental charges every month would be lesser allowing you to manage expenses better. If you have problems paying the rental, you can always move to a home with a lesser rental.
- In case of any repairs in your home, it’s your responsibility. In a rented home, the landlord has to do it.
- The landlord can increase the rent or even sell the house making you leave. This cannot happen in your home. You can rent your home or sell it to earn more money.
Now that you know the pros and cons of buying and renting, you can make a decision. Keep your specific needs in mind while deciding. You can use a London sales and settings website to search for the best properties to buy or rent.