Buying a House Vs Renting

July 26, 2007	(3 votes, average: 4.33 out of 5)  Loading ...
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Buying a house is certainly a smart decision than building it. Of course, easier said than done, especially in today’s scenario where property prices and home loan interest rates are going out of the reach. Is renting a house better option then?

Factors below can stimulate a few thoughts regarding the final decision:

Advantages and Disadvantages of Buying a House

Buying a house increases your assets and comes with a guarantee to appreciate over a period of time. Also, it gives you a sense of ownership as well as freedom from paying monthly rentals which hardly form the delight cup of any tenant.

With your own house, you have the full liberty to decorate it the way you like without taking any prior permission. But, the responsibility of its maintenance completely falls with you. You have to think a many times before relocating to another place. Then, there are the property taxes waiting for you. In addition to these outstanding expenditures, there is stamp duty, broker’s fee, insurance costs, society charges, registration fees etc.

Buying a house with the help of a home loan is not as easy as it looks to be. Banks and financial institutions never finance your entire home loan. They may take care of 80-90% of your home loan requirement and the remaining amount is to be paid by you.

Advantages and Disadvantages of Renting a House

Renting a house provides you with greater freedom and flexibility of choices, a factor which usually do not come with buying a house. Here, you are free from sharing any kind of house maintenance as this is primarily your landlord’s responsibility.

However, the landlord can send you a notice to vacate the place at any time on violation of any term or condition mentioned in the home rent agreement or increases the rent whenever he/she wants.

Needless to mention are the monthly rental payment which appears no better than the Damocles’ sword hanging over the neck at every month’s end.

Be Your Own Judge

Whether you buy a house or rent is largely based on your personal preference and financial factors. It would finally be a trade-off between capital appreciation and flexibility of choices. If you wish to build assets and make your investment portfolio look attractive, buy a house. On the other hand, opt for renting a house if you desire flexibility.

Ideally, buying a house offers an excellent investment prospect. Going the other way i.e. renting a house generally comes in case of unfavorable financial circumstances. During such an hour, renting a house offers a perfect valid interim plan.

News Published Under:   Real Estate Trends |