Renting vs. Buying A Home: Which Is Better?

Renting vs. Buying A Home: Which Is Better?

Owning a home is a dream come true for most individuals. But, the reality is, many can’t afford to buy a property right away. Instead, they resort to renting a home.

For people who just started to earn a living, buying a house may seem like an impossible dream, since it involves a hefty amount of money. That’s why many people opt to rent an apartment. Both have their pros and cons, but which is better?

Renting A Home: Pros And Cons

If you don’t have enough money to buy a house right away, renting can be a good choice for you. Renting a home has its own pros and cons. For starters, one advantage of renting a home is it helps you save on building maintenance and repairs since the landlord covers these expenses.

Moreover, if you’re renting a home, you’re probably paying off someone else’s home loan. If you own the house, on the other hand, you have an appreciating asset. Plus, you don’t have any certainty of tenancy control, while owning a house means your property is yours to live in as long as you like.

Lastly, renting a home limits your power to renovate or design it. Your landlord may impose rules on decorations, especially those attached to the walls.

Buying A Home Is Expensive But Worth It

Buying a house is easier said than done. In fact, you need an average of $286,175 to build a 2,000-square foot house. For an average employee in the United States who earns about $857 a week, or a median household income of $59,055 a year, owning a house is hard.

Buying a house is expensive. But, a primary residence is a lot more than just an investment. It provides security for you and your family. When given a choice between renting a place to live or borrowing the money to buy a place to live, the latter is better. Home loans are available for those who want to invest in housing.

Moreover, the value of a house increases in time. This means that if the value of your property heightens, your value increases, too. On the other hand, when you rent an apartment, you pay higher fees once the property’s value increases.

One of the disadvantages of owning a house, however, is you need to budget for building repairs and maintenance. But, remember that any improvements made to your house will increase the value of your investment. Buying a home gives you the satisfaction of designing or decorating the space the way you like it. You have the privacy of doing whatever you like.

Which One Is Better?

There’s no better choice. The decision depends on your preference – whether you like to rent an apartment or buy a new home. Either way, both provide a place to live in and both have their own disadvantages. If you want to have a place to call your own, you can always apply for a home loan. If you want reduced costs in repairs and maintenance, you’d want to rent an apartment.