Buying a home is a dream for every individual. However, few consider renting a home instead of owning, as it either goes out of budget or not finding the right home. Both owning and renting has equal advantages and disadvantages. Although you are flexible with rented homes, you are again committed to certain rules and regulations set by the property owner before you are given the key.
Here follows a few interesting facts to help you analyze, which could be the better choice: To own or to rent:
What Favors owning a Home?
- With the decrease in the mortgage balance, equity increases
- The value of your home increases over the years and although the increase rate may become slower at some point, you will definitely get an increased value
- You are free to remodel and renovate your home however you desire
- You get the tax advantages in addition to the ownership of the home
- You may not need to keep shifting or find another home
What Favors Renting a Home?
- You will be paying a fixed cost in terms of rent or lease for the rented home
- Although you do not gain any equity, you have nothing to lose in the rented home
- You are always free to move or look for another home, when the cost or rent is hiking
- You are absolutely free from the tension of maintaining the home, as the burden is transferred to the home owner, for which he charges along with the rent
- You pay only a small amount as the up-front cost, which is no or less burden to you
What makes owning a home is unfavorable?
- The cost of home in the same apartment or locality will vary with others, which you may get disappointed when you come to know the cheaper cost your neighbor has bought the same time and area of home
- Although the equity may go up, there is also an uncertainty for the same to go down or stay stagnant. Therefore, your investment may not prove to be always profitable
- If you are thinking about migrating to another region or travel to another country, then the only option you may generally have is to simply lock the house or sell it. The risk is more on protecting and maintaining your home
What makes renting a home unfavorable?
- Regardless of the value of the home, you will never get equity
- You can never personalize the home or the living or surrounded space
- You will not get tax benefit for the amount paid towards rent
It’s all about personal choice and financial status determining to which the individual decide on either renting or owning a home.