Why you should own a home rather than rent
Renting or Owning? Which do you want? Really, it’s not a decision one can just make at the twinkling of an eye as there are so many factors to be considered in choosing owning a home over renting one. Factors that are of utmost importance and should be given priority include income, lifestyle and age. Of course, income is very important as to ensure you don’t go bankrupt all because you want to own a house. You should know your financial state which your costs and savings is. Also, you should consider your style of living and values – this makes you go for your taste and what you like.
As appealing and pleasant owning a house may sound to the ears, renting has its advantage over buying a home. Renting is obviously carefree in comparison with homeownership which comes with more responsibility. Many proportions are involved in rent and buy which are used to determine if the property will be a good buy or it won’t be. Another important thing you must note is that buying a home is not about the money, so, you might not need to adapt to the rules. So many calculators are used to determine the rent vs buy proportion by many people but most of them compare asking prices to annual rents in order to determine if it is a good buy or it will be a bad buy at that time.
Advantages of Renting Over Owning
Freedom of movement
With little consideration of the agreement in the contract, you can choose to relocate by leaving the present house and move to another place and not give your decision a second thought. Imagine you have a house rented in Texas and you got a new mega
Job in L.A, booyah! You have to relocate and that’s not a big consideration for you if your house in Texas is a rented one.
No pressure of responsibility
There is absolutely no responsibility on you if you rent the house. You can choose not to do any serious replacement of damaged items in the house especially if you are staying for a short term. Renting a home shows there is an agreed sum you are going to pay your landlord monthly or yearly as the case may be. The monthly or yearly payment obviously does not include maintenance, insurance and taxes of a mortgage which makes it seem like they are almost of the same price, right? But imagine a breakdown in the bathroom, you cannot get a free fix for it in a mortgage, you may be forced at that moment to take responsibility of the damage.
The landlord takes care of fewer expenses
The landlord takes responsibility for fewer expenses because he owns the house and of course wants to do things to satisfy you. This saves you spending more on the house.
You can put your remaining money in other investments
Since your rent and other maintenance is well reduced, more can be concentrated to other investments and your money can yield more for you.
Despite the benefits of renting a home, it still offers its shortcomings, more than the benefits and they are:
You end up with nothing on the long run
Imagine after many years with a property and you have done quite a lot of refurnishing to the place to make it suit your taste, at the end of it all, you leave the house and you are a man with no place to lay his head again, you walk away with emptiness. Zero home equity, zero ownership.
Still stuck in a lease
The rent payments continue and seems not to end on time. Three decades is quite a long time but your lifetime of course is far way longer which implies that you may end keep paying your landlord as long as the case may be. No retirement in it. The worst part is that after all the many payment and being indebted to someone you are finally not going to be able to pass down any property to your kids. What has been the point all the while then?
Forceful relocation
The owner can wake up a day and choose to sell his property. He owns it, he can do what he wants with it. You will be helpless and of course you might have to relocate forcefully. So, to establish a family, renting an apartment might not be helpful and may truncate your plan about establishing your household.
Restrictions
There are restrictions everywhere and the freedom for heavy renovation is not there. Standard renovations like addition of a new room, construction of an outdoor pool and other serious renovations cannot be done in such places. At times, just change of paint can seem impossible
The numerous shortcomings that comes with renting a home are well taken care of when you own your home. Some of the advantages you would enjoy are:
Ownership advantages over renting
Really, no better feeling than being the Lord of a property. There is rest of mind it confers to you and of course, you have gained home equity.
No rules by external personnel
Well, being the owner of a property confers all right to do anything you want to do to a house and restrictions are done away with. You can keep modifying your property until you are well pleased, no one dares question your lordship.
Cheaper
The bitter truth is that owning a house is better than rent. One is that you are not indebted to anyone forever and that means your retirement is for you to spend on other things aside paying for rents. Also, despite factoring taxes and insurance, the mortgage payment gives a lesser payment than rent. Homeownership confers tax and insurance benefits to the owner – so, a damage can be well taken care of without a dime from my pocket.
Wealth
Did I say wealth? Yea, I did. You can amount a great ton of wealth from your property. This is possible because they are no restrictions to the renovations done and ROI can be employed so as to make the property increase in worth in the coming years.
