There is always a passionate debate about which makes the most financial sense – do you just buy or rent a house? Both sides have valid points, so choosing between the two can be a great challenge.
Some people decide to buy a house rather than renting is because, for them, it is better to build your own equity instead of paying monthly rent to a landlord. In reality, there are many financial reasons why renting may be more compelling. You also need to make sure you understand whether you are even in a good position to buy a house.
Aside from your financial status, you should also consider other aspects of your life such as social. If your social, professional and financial lives aren’t in order, now is probably not the right time to be buying.
The truth is that the cost of owning your own house is actually higher than many anticipate. Many believe that buying a home always makes sense than leasing. However, that is a foregone conclusion. You often hear that ‘every dollar you pay in rent is a dollar you’ll never see again,’ while buying a house is a ‘great investment.’ This is misguided for a few reasons.
On the other hand, there are some who prefers renting over buying. For them, paying rent is not actually a waste of money. Truly, you won’t see your money again, but you are getting something in return: shelter for yourself and your loved ones. Even when you buy, you’ll be spending a lot of money on interest payments, taxes and other fees – money you will never see again.
When you rent a house, you don’t have to worry about maintenance and repair expenses that most homeowners worry about – that’s another reason why renting is more practical than actually buying.