Which option is best for you isn’t just about money; it’s also about comfort and your vision for your life. Ignore people who tell you that owning always makes more sense in the long run, that renting is throwing away money.
You have to think of how important is it that you have a feeling of ownership, or to make changes to a house you are living in? Or what you think about the prices of real estate? What will happen with inflation? These are important questions to ask before you can come up with a real decision.
Owning a Home
Purchasing a home is one of the biggest financial decisions you will make in your life. So, before you decide to buy, carefully consider the pros and cons of home ownership. So here some questions to ask yourself to determine whether you will be a homeowner or you will just be satisfied with being a home renter.
Questions you need to ask yourself
- Do I really need to buy a home?
- Is my income going to grow?
- Will I stay in the property long enough to benefit from the purchase?
- Have I got enough money saved, or do I have unrealistic expectations?
- Am I ready for the responsibility? Buying a home is a major financial move, so you’re wise to look carefully at the positive and negative aspects.
In this part of the guide, we will try to show you the pros and cons of owning a home.
Pros of buying your own home
1- Potential for Rental Income
You have the option of buying as an investment, For example, renting your property, which enables a homeowner to generate income and at the same time owning a personal property.
2- More Creative Freedom:
- When you buy a house it becomes your legal property, which allows you greater freedom in its use without restrictions often enforced by a Landlord.
- As a homeowner, you decorate, do DIY project, and home improvement choices answer to no one.
- You can paint the walls, add new bathroom fixtures, update your kitchen, and finish your basement with no restriction or no waste of money if it is for rent.
3-Greater privacy
Owing a private home can assure you great privacy, the owner won’t come every once in a while to make sure that everything is ok, you won’t have to contact the owner every month to pay the rent or ask for anything.
4-Homes typically increase in value
The value of a home will increase over time and if you decide to sell, you can earn a profit from the sale, so buying is a potential growth in personal wealth.
There’s pride in home ownership, which also closely ties you to your community. Being a homeowner can sometimes mean better place in your community that can add value and prestige.
Cons of buying your own home
1-Potential for Financial Loss
Sometimes because of market reasons, the value of a property drops down, so if you are willing to sell and move to another place this would be a financial loss because you would get less than you actually paid in the first place.
2- Full Responsibility
As a homeowner, you’re responsible for covering the cost of all necessary maintenance and repair work on your home.
3. Homes Aren’t Sold Furnished
Homes are usually sold with furniture, they are blank and you have to create everything from scratch, sometimes you have to do the wall painting and all the primary stuff of living in the house.
By contrast, many rentals come furnished. Even if their decorations don’t quite match your tastes, furnished spaces can save a lot of resources.
5-Home ownership is a long-term financial commitment
You’re responsible for all maintenance in your home. This can include inexpensive repairs like fixing a broken toilet to complex and costly repairs.
6-Mobility restrictions
Owning a home tie you to your neighborhood, making it more difficult to suddenly pick up and leave a location.
A homeowner has less mobility when it comes to being able to move home than a tenant who rents on a short-term basis.
A Tenant can leave a property after fulfilling the notice period, which is usually one month. However, a Homeowner is likely to be dependent on selling their home before.
Being able to buy a new one, and therefore it might take longer to be able to move homes once the decision has been made to do so.
What are the Pros of renting a home?
While it might seem like rent is wasted money, it’s going towards a service, because you do not own your apartment. Depending on your needs, you may be able to find apartments which has a strategic location or provide access to certain services like a gym and pool facilities and some apartments may even come furnished.
Depending on your financial situation and preferred style of living, there are many advantages to renting.
1-Mobility
You have the freedom to move anytime you want. While your lease agreement will dictate the terms of your moving out, if you need to relocate you can do it on a short notice.
2- No Responsibility for Maintenance or Repairs
No Major responsibility for Maintenance, when you rent an apartment you buy it with fully maintained, and If not you can do the maintenance but you should ask the house owner to decrease the rent payment value.
3-Monthly costs
While it will depend on where you live and how much the house costs, but in many cases it is cheaper to rent than to own.
4- Relocating Is Easier
When you rent, relocating for work is easier, less time-consuming, and potentially less costly. That’s why renters who change jobs often (or have steady jobs that require frequent relocation) typically rent until their professional lives stabilize. Though a sudden move may require you to break your rental lease, you can partially or fully offset the cost of doing so by subletting your apartment or negotiating with your landlord.
On the other hand, selling a home takes time and effort. If you need to sell your house quickly, you may be forced to accept a lower price and potentially take a loss on your investment.
What are the cons of renting a home?
1-Fewer choices
The choices are narrower for renters. There are not as many rentals as there are homes for sale, so you have a more limited choice of where to live.
2-Inflexible ability to “make it yours”:
Most landlords do not want the renters to do renovations to the house or other projects that suit their specific needs. This can restrict your ability to fully enjoy your home or make it feel like it is yours.
3-Growing rent coast
Your housing costs aren’t fixed like they are with a fixed-rate mortgage. Your rent will most likely grow from year to year.
4-rental fluctuations
When renting a property, you will have no control over annual which are directly affected by inflation. There is no guarantee that a lease will be renewed when it expires.
Which option is best for you isn’t just about money; it’s also about comfort and your vision for your life. Ignore people who tell you that owning always makes more sense, in the long run, that renting is throwing away money.
Still, despite the added expense and extra chores associated with owning a home, many people chose it over renting: It provides a more permanent place to raise children in. Or it offers the only way to have, or create, the sort of residence they want.
Ultimately, the decision to rent or to own is not necessary, just financial but can it can also be emotional.