Millennials are always looking to move out of their parent’s house. Nowadays, the market is rough, and many people don’t have the possibility to buy a home.
If you have the chance to choose between buying a home or renting a place, you might be wondering what is better. People are used to renting apartments, but do you know the advantages of buying a home?
Let’s see the pros and cons of each living arrangement, and then you can choose what’s best for you.
Repairing Home Appliances
The advantage of living in a rented home is that most of the time, you don’t have to pay for repairing broken home appliances. On the other hand, if you own a house, you are responsible for everything that gets damaged. For example, a refrigerator repair service can be pretty expensive if you have to pay it out of your pocket. However, if you’re in a rented apartment, the landlord should take care of this.
Most people don’t know that landlords should pay for repairing broken appliances, so most people pay it either way. Landlords must take care of different things, depending on what’s written and agreed upon within your contract.
If you own your home, you should aim to invest in good appliances in order to avoid them getting broken and take out warranties where possible to avoid hefty payouts in the future.
Living Cost
Renting indeed costs you money every month, and you must pay it on time. This is one of the key benefits of owning a house; there is more flexibility to mortgage payments. If you can’t pay on time, then you aren’t breaking a contract in which you could be potentially homeless very quickly.
Sometimes, when we’re having a bad month, things can get rocky with the rent payment. Some people even struggle every month and have to ask for loans to continue living in their house.
Owning a home is expensive when you’re first buying the house, and it also depends on if you’re getting a mortgage or not. Even though, after you’ve paid everything that regards the home, it is all yours!
Also, if you buy different houses, you can always rent them out. This way, you will get some money back and a little extra income each month.
Saving Money
Owning a home allows you to save money in the long run. Rent payments take a considerable part of your monthly income, and this could hurt your savings. Having a house can help you save some cash because you have to worry about paying the services bills, and pretty much nothing else.
Of course, accidents happen, and things get broken, but these are things that usually don’t happen, month after month!
According to a study conducted in 2013, buying a home is 44% cheaper than renting. This study is evidence that becoming a homeowner is the cheaper option if it’s a possibility for your financial circumstances. And then, you can do what you want with it– rent it or resell it; it’s your call.
Location
The downside of owning a home is that you can’t just grab your things and move out whenever you want to. Renting a place can give you the freedom to live wherever you want, for how long you want to. If you own your home, you can still do this, but not as easily.
Also, you can choose where you want to live. Renting is pretty easy, you just need to apply, and if you know what you’re looking for, you will have the perfect place in no time. Buying a home requires research, evaluating the market, comparing prices, and deciding on the location.
When looking to buy a house, you must decide where you want to live, and this will affect the price point. For example, homes in the city are significantly more expensive than those located outside the main city.
Final Thoughts
Renting or buying– in the end, it’s all about preference. If you’re someone who loves exploring new places and gets itchy feet to move often, maybe renting a place is a better option for you. On the other hand, if you have a family and want to have a secure home, you might prefer buying a home.
Renting has its benefits, as not paying for appliances and maintenance, having the freedom to move around, and choosing the location you want. However, buying a home is a smart decision regarding always having a place to live, making an investment, and saves you money in the long run.
