Renting Vs Owning a Home? Which is the Best Option
If you are looking for a home, you might need clarification on buying or renting a property. Both have their pros and cons. The decision mainly depends on various factors. Let us understand the factors shared below:
Your Financial Situation
Your financial situation is one of the key factors that will shape your decision. If you have low savings, then buying a property will not be the right option for you at the current moment.
Your Family Size
The decision of renting vs owning a home also depends on the family size. If the number of family members is more then going for a rented home might not suit your needs. You should buy a home that suits your budget and needs.
Your Future Life Planning
If you are a married person above the age of 35 to 40 years then buying a home will be the best option for you. It depends on what your future goals are: like planning your children’s careers, and their future. They may need a dedicated place where they can study without any external disturbance. In the case of a rented home you may not have the advantage of prioritising things according to your and your family’s needs as there may be other people in the same building, maybe the landlord or other tenants.
Renting a Home
The biggest myth is that you are throwing away your money every month. It’s not true in an overall sense. We all need a space to live in.
Unlike buying a home, in opting for a rented home, you know what your monthly housing costs are. You are aware of the upcoming costs on your home. In some cases, the landlord may charge you extra for more amenities like drinking water, electricity charges, parking, etc.
The disadvantage of going for a rented property is that your landlord may increase the price when your rental contract period ends. This increase may affect your expenditure planning and investments.
Another disadvantage is that you may have to move and look for another property for rent if the owner wishes to sell the property. Shifting from time to time can cause more stress and hassles.
Owning a Home
Owning a home brings more benefits as you can plan your decision about the architecture of your home, you can choose the building material according to your need and budget. You can choose the design of your dream home.
There is no disturbance from external sources as you own the property. There is no interference from anyone.
There is no or less chance of feuds over parking issues.
You can get good returns on selling the property if your home is in a prime location that attracts businesses and offices in the surroundings.
You may take pride in living in your own home. Living in a rented property can keep you anxious as who doesn’t love living in his own home.
Let us understand some of the taxes and expenses that you may need to pay in a rented property.
- Pest control Charges
- Tree trimming Fee
- Homeowners Insurance
- Pool cleaning (if you have one)
- Property taxes
- Trash pickup (some landlords require renters to pay this)
- Water and sewer service (some landlords require renters to pay this)
- Lender-required flood insurance (in some areas)
- Earthquake insurance (in some areas)
- Security Charges
So, these were the differences in renting vs owning a home. If you have any queries, feel free to ask me through the comments section below.