Getting onto the property ladder can be difficult if you don’t already have the financials behind you, but is renting such a bad option? With advantages and disadvantages for both, let’s see whether it’s worth buying a home or renting one.
Buying A Home
Buying a property certainly has its advantages especially when it comes to selling a property. Real Estate does fluctuate, but it could end up falling in your favor and making a substantial profit which means more money in the bank. Finally becoming a homeowner is such an exciting time and it means you’re free to do what you want with it when you want. So if you want to knock down a wall or build an extension, providing you have the permissions, you can. If you want to paint your walls neon pink, you can! The opportunities as a homeowner are endless, and that’s something you’re limited to when renting.
But of course, there are some disadvantages to owning a home. Firstly, you’re now the landlord of your home. That means that if anything breaks or gets damaged, you are the one paying for it. It’s ok if you’re in a fairly new home and have guarantees on your appliances. But anything can happen in the home, and some may well be out of your control. A big expenditure of a home also ties you into a mortgage and to a degree, ties you down in life. It’s not something cheap to pay off quickly either so when you take the plunge and buy a property; you may need to hold off on that round the world trip you were planning to do.
Renting A Home
If you’ve moved to a new city away from the family for the first time, then in all likelihood, you’ll be renting. However, renting is apparently preferred by Americans according to this article https://budgetboost.co/cheap-renters-insurance-cost-comparison/, and that may be down to a few of these advantages. One is that you’re not committed to anything for a long period of time. Normally rental contracts will be renewed every year or so, with some rental contracts being short-term. This is great for someone who may be in limbo with their plans and not want to commit to anything too drastic like purchasing a property.
Secondly, let’s not forget that you don’t have to worry much about paying for any damages to the property (providing you didn’t make them) as the landlord will be responsible. This is great because it will give you some peace of mind where you won’t need to worry much about big expenditures.
But like buying a property, renting also has its disadvantages. You may fall victim to the wrong landlords, those who tend to take advantage of a tenant by either increasing rent annually or surprising you with unannounced inspections of the property. Therefore, it never really feels like a home or is 100% private to you as a tenant. There’s also the fact that your rent is going towards someone else’s mortgage and that money could be going back into your pocket if you owned the property.
Both buying a home and renting one has its pros and cons. In the long-term though, it seems there are more benefits of owning a home, especially if you’re looking to settle down and have a family but renting can also be great for those who don’t want the commitment of a mortgage either earlier or later on in their lives.