Each people need a home to come back, but they may wonder between buying home vs renting one. Below, we give you some valuable insights to help you in making the right and worth decision!
The Difference Between Buying Home and Renting
The most apparent difference between buying and renting is a matter of ownership. It indeed feels more comfortable to live in your own house as you can conduct half or complete renovation depending on your needs and preferences.
While there are some advantages when buying your own house, you should consider your own financial conditions before making a decision. Property is expensive and the wrong move might give you more stress and headache rather than benefits.
If you are still not sure about the right decision, let’s look into the difference between buying home vs renting comparison.
Buying Home vs Renting Comparison
So, what are the differences?
Equity and Investment
Stocks are not the only investment available. More and more people move into property investment. In most cases, home’s value is naturally going up each year, especially if it is located in the strategic location.
While renting only means you can use that home for the place to stay at the time being (as long as you pay the rent), buying a house will give better advantages in the long run. Furthermore, interest rates are not as high as before, so you don’t necessarily have a high amount of money and can pay little by little with loan system.
Talking about the loan system, you may encounter home mortgage terms. Before deciding, it is better if you understand about home mortgage definitions. Basically, a home mortgage is an agreement between lender and borrower which allows the lender to confiscate your home if you can’t pay off the loan.
Even though buying a house seems like a good investment, there is also the downside and one of them is maintenance costs. If you are only a tenant, refrigerator repairment or other maintenances will be the responsibility of the landlord.
On the other hand, buying a house means you are the landlord of the home, so any maintenance should be managed by yourself.
Trial and Error
They say you won’t know how good a product before you are trying it yourself and that also works for a home. Renting a house gives you more flexibility when you can move out if you don’t feel comfortable or if your financial conditions change and you couldn’t pay for the rent anymore. Well, you can’t just move out from your own house when you even still in the loan period, right?
Buying Home Vs Renting Calculator
Now after you know the comparison between each choice, you may wonder which one to choose. Fortunately, there is an online calculator to help you in making a more profitable decision. We believe it is one of the best rent vs buy calculator in the market right now. Check it out!
With this calculator, you will get the information about the total cost of buying home vs renting and how much money will you save if you choose one option over another. Pretty convenient, right?
Whether you decide to go for buying a home or renting one, it depends on your preferences and financial situations. What are renting vs buying house pros and cons? Several advantages of renting home are you gain flexibility to move anytime and no need to hassle for home maintenance.
Meanwhile, buying home will be a good investment for the long-term.
That is all about buying home vs renting comparison. Choose your plan carefully and get your dream house right away!
If you are First-time home buyer you able to read First time Home Buying Guide