The pros and cons of renting vs owning a home are still being discussed today. This is considering that having a house is a dream for many people, especially for those who are newly married.
However, what often becomes an obstacle or dilemma is the down payment and monthly installments. Some people said that buying a house is better than renting because buying a house makes you own the house later. Compared to renting a house, the price can go up at any time and you have no power over the house. Then what are the pros and cons of renting vs owning a home? Check it out below!
Pros and Cons of Buying a Home
We’ll discuss the pros and cons of buying a home first. There are several advantages and disadvantages of buying a house as below:
- Get A Profit On The Sale
The advantage of buying a house is that it allows you to make a profit on the sale of the house. When buying a home you have a long term, profitable investment. You can rent it out even when you are pressed for profit when you sell it.
- The Value Grows in the Future
Beside of the land, the home becomes one of the most profitable property investments.
That’s because the house offers long-term profit growth. Why is that? The reason is simple, because society population grow significantly, making the need of property keep increasing. This also makes the value of the property has increased rapidly. In simple terms, these properties can also increase the amount of your wealth.
- Clear property rights
The advantage of buying a house over renting a house is clear property rights.
As the person buying the house, the property will legally belong to you. By owning the rights to the house, you have the freedom to do anything with the house, including renovating it and changing its appearance to your liking. Not only that, you also have the right to rent the house to other people to get more profits every month or every year.
- Credit Profile
By applying for credit and paying it on time regularly absolutely can improve your credit profile.
With a good credit profile, banking will trust in you. If that’s the case, it’s easy for you to apply for other financing, for example applying for credit for business capital and so on.
- Short Term Profits
By owning a house, you don’t need to spend money continuously to rent a house because you can live in the house right away even though the installments haven’t been paid off.
- High maintenance costs
Compared to land, houses have high maintenance costs. If it is not maintained regularly for longer time, there are costs that must be incurred. Even repairs can be expensive. For example, the cost of painting a house when it starts to get dull, repairing leaking pipes and so on.
Pros and Cons of Renting a House
You should know the pros and cons of renting vs owning a home.
The goal is for you to know which one is really right for you. Then what are the pros and cons of renting the house? Check it out below!
- Suitable for those who live nomads
Rent a house is perfect for those of you who live nomadic.
If you have a job that moves from place to place and rarely stays in one place for a long time, renting a house is the right solution and the best choice.
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When you buy a house and your job forces you to move from place to place, of course you have to leave the house for a long time, causing the house to become unkempt and neglected.
Renting a house doesn’t require commitment and is long term so you can move places whenever your job wants.
- Feel Staying at Home with a Strategic Location
Buying a house in a strategic place or location makes you have to pay a high price.
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Compare if you are renting it. Indeed, the cost of renting in a strategic location is more expensive than a property that is not in a strategic location. With a strategic location you can easily move places and easily reach one place to another. Renting can also be the right solution for those of you who have tight mobility.
- Does not incur maintenance costs
As a tenant, you don’t have to pay maintenance costs for the house.
This is because the maintenance costs are loaded by the home owner. It’s different if there is a rental agreement that requires the renovation costs to be loaded jointly or by the tenant.
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The pros and cons of renting vs owning a home are interesting things to talk about. Both renting or buying a house have their own advantages and disadvantages, therefore know your needs and financial condition in order to get the best solution!
