One of the biggest investments that people make in their lifetime is buying a new home. However, before finalizing the decision to buy a new home, most of them face the dilemma whether to rent a house or buy a house. If you belong to the group of this confusion struck people, it would be good if you read further. This article will help you reduce your confusion between renting and buying a new home.
Now, let us quickly glance through the advantages of renting a house because they are fewer than the benefits offered by buying a home. When you rent a house, the only monthly payments that you will need to make are your rent and utility bills. However, when you buy a new home, apart from mortgage payments, you need to pay bills, repairs, maintenance and the interest rate. Secondly, if you wish to relocate, it is easier when you rent a house. If you own a house and plan to relocate, you will need to advertise your property, pay fees to a realtor and pay stamp duty, which will be an added trouble.
Well, now let us understand the benefits of buying a new home. When you own a house, you have the security that you can stay there as long as you want. However, when you rent a house, this security totally lacks because long-term leases are quite uncommon. Even if you manage to find a homeowner who is ready for a long-term lease, the homeowners increase the rent whenever they want to.
It is most likely that the amount of money you pay as mortgage repayment will be more than monthly rent. However, when you sell your property you will certainly profit which is not the case when you rent a house. Renting a house will offer only short-term flexibility whereas buying a house offers long-term security.
Whether you buy a new home or rent a house, every month you will spend some part of your income to pay the mortgage or rent. However, in the case of rent payment, you will be shelling out money towards something that will never be yours. When you pay mortgage, you know for a fact that the house will be yours eventually. The money spent on rent will provide you with a temporary shelter for a short time span and once the time elapses, the money will be gone forever. However, mortgage repayments will provide you with shelter for a lifetime.
A little hesitation to buy a new home is totally natural because you will start worrying about money woes and the volatility of the real estate market. However, the idea of home ownership is much more profitable as compared to renting a property. If you have a stable job and no plans of relocating in the near future, buying a new home is the best option for you. A rented house can never be a ‘home sweet home’ because you know for a fact that you will need to empty it someday, but when you buy a new home, your memories of a lifetime will stay with you forever.
Stella Jhon, a real estate agent, working as a property manager in different real estate & property management advisor. Follow me on twitter : https://twitter.com/#!/StellaJhon