At one point or another, each of us has dreamt of buying our own dream house. The common wisdom passed on to me by my parents was to buy a house as soon as I can because according to them it was a great investment. But times have changed and together with it, our economy has been challenged multiple times in the last decade. Housing has been a negative talking point due to the tightening measures imposed by banks and lenders. Buying a house has never been an easy choice since then while renting a home became a viable option. With the projected lowering in prices of houses nowadays, is it safe to assume that maybe this year might be the best time to buy a house? Let’s weigh the pros and cons of buying and renting a house.
There are pros and cons to either buying or renting. Buyers can argue that owning a bit of the American Dream gives them security that they can pass on to their children. However, that dream can be very expensive and financially limiting. On the other hand, renters can have greater flexibility because it is simpler for renters to pull up stakes and move if the need arises. However, the money they pay each month helps the landlord's financial security, not theirs.
Pros and Cons of Renting
On the surface, renting a house or an apartment seems to be the more economical of the two choices. With only having to pay the monthly cost of rent and basic utility bills, people need not concern themselves with the details that come with housing loans and avoid a lot of the risk that comes with the possibility of not having the capability of paying off those mortgages. It is a far less complicated scenario.
Another advantage of renting a home is the mobility it provides. Considering how it is very likely that one will encounter a situation wherein packing up and leaving on relatively short notice (like a job opportunity in a far away land), merely renting a home makes it simpler to change addresses without having to sell the house or find someone who would take care of the house.
Renting, particularly an apartment, makes sure that certain small problems are taken care of. When the need for repairs and maintenance occurs, the responsibility usually falls on the landlord, instead of the tenant, to take care of such matters.
There are also a few disadvantages to renting. The lack of security is one of the most glaring of those disadvantages. At the end of the day, the house you live in is not yours. There is also the regular increase in the price of rent that sometimes occurs. This would throw off your budget or prompt you to look for other places to live in that fit your financial capabilities even more.
Pros and Cons of Owning a House
Having your own home is a benefit in itself. While there are going to be financial obligations that come with purchasing your own home, the one thing to take away here is that you will end up owning the house you live in, making for a level of peace of mind, and even a wise investment.
One thing you can do with an owned house, which you cannot do with a rented one, is to implement home improvements. Since you own the house, you can basically do with it whatever you please without having to go through a landlord and such.
Having your own home also guarantees that you have something to leave behind for your kids, which is a big deal. If you have a family, then living in your own house ensures that your kids will have somewhere to go to whenever they need it. Essentially, you guarantee that you and your family have a roof over your head for the foreseeable future.
The disadvantages of owning a house are also several. As alluded to earlier, having your own home makes moving out complicated and difficult. Sometimes, it can be immobilizing, having to choose between an owned home and a career opportunity.
Funding your own home may also take a long time, thus the enjoyment of owning a home may come after years and years of paying it off.
With both housing options brandishing their own set of pros and cons, it is really up to which one fits your lifestyle more. If you are a mover, rent. If not, plant your roots in your own home.