Why it is better to buy vs. rent a home
Thinking of whether to buy a house or just take a place on rent? Well, there are many people like you who are asking themselves the same question. There are many benefits of just renting a place as there are many homeowners who are letting out their homes on rent at reasonable rates. What’s more, since there are many homes available for rent, you are practically spoilt for choice.
However, it is always wiser to think about buying your own house instead of staying in someone else’s. In this article, we will talk about how it is better to choose to buy a home for yourself instead of choosing to live in a house on rent.
1. A home is an asset:
When you buy a house, you are actually investing in an asset for yourself. Any property that you buy and own is an asset and a good piece of property will never depreciate but only increase in value. So you need to think of it as not just buying a house but investing in a potential asset that is sure to grow over time.
Many people lose interest in buying a house when they find out how much they need to shell out in order to purchase the property. They find that renting is better as they just need to spend a significantly smaller amount every month to pay rent.
What you need to understand however, is that you will have to continuously pay this amount to the owner of the house as long as you are staying there, and in case the owner decides to increase the rent, you will have no choice but to pay the increased rental amount.
2. Buying a home is better in the long-run:
The fact remains that the amount you spend on rent will be more in the long-run as compared to what you will pay to actually buy a home for yourself. At the start you will feel discouraged to invest in a home looking at the hefty price tag of the property. However, what you should remember is that this would be just a one-time investment.
Even if you are taking a home loan to buy the property and to pay an EMI, then this amount would just be a temporary expense for you. If you feel discouraged by the sizable amount of your income that is getting deducted every month because of your EMI payments, then recall the fact that this charge will not go on forever it would stop once your payment for the home has been completed.
However, if you had taken the same place on rent, then you would be paying for the place indefinitely since taking a rented home means paying a fixed charge every month for as long as you stay on lease in that particular house.
3. A purchased home is your own:
When you move into your very first home, you will only feel a sense of happiness and pride knowing that you have succeeded in purchasing a home for yourself and your family. What’s more, you are free to make any changes to any of the rooms and even make a few home interior or exterior modifications.
Whereas, if you stay in a place on rent, you will surely not have the freedom of even hammering a nail in the walls to hang up your photos without first checking with the owner of the house. So making any further home improvements would be out of the question. The bottom line is that you will not be free to personalize the home since you know that it is not your own but belongs to someone else.
Buying a home will definitely cost you a lot of money and you might feel that it would be easier to just rent a home instead. While renting a home does cost less money and involves less paperwork, buying a house for yourself has way more long-term benefits, plus you have the added security that the home you purchased is yours to keep forever.
By: Mike Gustus