subject: Buying Vs. Renting a House [print this page] Buying or renting a house depends upon the personal opinion and financial status of each and every individual. The following are the advantages and disadvantages of Buying and Renting a House:
Buying a House:
Advantages:
Buying a house increases your asset.
Houses have a guaranteed appreciation over a period of time.
You don't have to pay monthly rentals.
Buying a house gives you a sense of ownership. Once you pay the loans taken on the house, you own the house.
You can decorate your house in the way you like without getting any permission from others.
Disadvantages:
You are responsible for all the maintenance that is to be taken care of.
You have to think a lot before relocating to another place.
You have to pay the property taxes.
You have to pay the Stamp duty, broker's fee, insurance costs, society charges, registration fees etc.
Banks 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.
Renting a House:
Advantages:
House maintenance is taken care of by the landlord
No property taxes
If you do not like the locality of your house, you can change it at any time. You don't have to think a lot about relocating.
Disadvantages:
Landlord can increase the rent.
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
You have to pay forever
You can't modify your apartment
Conclusion:
Buying or renting a house depends upon the personal opinion of each individual, since both the option has its own advantages and disadvantages. Taking a decision also depends upon the financial status of the individual. For a person who desire flexibility of changes, renting a house will be a good option. On the other hand, if one is looking for a long term investment and wishes to increases his asset, buying a house will be the best option.
Buying a home is one of the smartest financial decisions most people will ever make. It offers an excellent investment prospect. If you rent, you'll always be poor. The longer you rent, the less likely you are to buy. If you have saved some amount for the deposit, buying a house is the best option. By renting a house, you pay a lot for what you are not going to be the owner. By paying rents for a long time, you are not able to save for a deposit to buy a house.
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