Is it better to rent or buy a home based on cost and convenience? The only answer to this is that it really all depends on your financial situation and circumstances in life. However, for most parts, in the long run, owning a home is always much better than renting one.
Whilst renting seems convenient, with suitable amenities at many rental properties, and rent is affordable, it is not as clear as you may first think. There are so many more benefits that come with owning a home — benefits that are more substantial. Paying a home off is not much different to paying rent. You are also not losing much money either.
When paying rent, it is likely that the money you pay will soon disappear. This does not build equity. You will also not receive any net returns later on. The benefits of renting however include: not having to be concerned about general maintenance, or construction of the property.
This is always looked after by the landlord. Landlords rent properties because they earn good income from this. They did not get into the rental market from kindness. They are receiving more money from you than what your current living situation is worth. It is likely that you also do not have as much space as you would have if you owned a home.
However, the major advantage of renting over owning a home is that renting is far cheaper in the short term. Two months rent can be paid for when signing a rental agreement. You are not wasting thousands of dollars all in one go as you would if you had bought a house. You also do not have to make mortgage payments or property taxes.
In the long run, owning a home has greater advantage than renting. Particularly when it comes to paying for your home. Looking into the future, you are not losing as much money as you would with renting. The money that pays for your mortgage will eventually clear you from the debt you owe. The home you have bought in its full value will be yours for as long as you would like it to be yours. Even better, the money that goes towards improving your home, will increase the value of your home. Your net worth will also be increased. As a result of all this, the money going towards your home will become an investment towards the future.
Another fantastic benefit you are receiving from owning a home is that you will not be charged more rent. At times, landlords will increase their rent. This will not happen when owning a home.
The downside to owning a home however, is that you are the only one responsible for your home. It is up to you to maintain it. It is up to you to hire a plumber or air conditioning professional. Not only this, but property tax can also make things difficult. You are certainly not free yet. However, once you have paid your home off, it comforting to know that it is yours for keeps. You do not have to say that you are living on another person’s land.
Sourced from: Dugout