Renter’s Guide: Should I Rent Or Buy A House?

“Renter’s Guide: Should I Rent Or Buy A House?” written by Mike Marko

Should I rent or buy a house?” That’s a big question for many people.

The reason for this is because owning a house involves a lot of money. This is a big financial decision so you need to make the right choice.

Making the right choice can give you several advantages. It can also help you achieve your goals in your personal life and career.

If you choose the wrong option, it’s possible that you could lose a lot of money.

That’s why in today’s blog post, we’ll talk about buying and renting a house.

Should I Rent or Buy a House?

Should I rent or buy a house?

You need to be careful in choosing between renting or buying a house. Make sure that it will benefit you in the long run because buying a house is one of the biggest financial decisions that you’ll ever make.

Should I rent or buy a house?” There’s no general answer for that.

The right choice only depends on your situation.

There are several factors that can determine if you really need to buy a house or not. Factors such as your lifestyle and income can determine if buying a house is the right decision.

Again, buying a home is a major financial move. It’s best to make the right decision. So to help you answer your question should I rent or buy a house, here are the pros and cons of renting and buying a house.

Pros of Buying a House

“Should I rent or buy a house?” I’m going to help you with that by listing the biggest pros of buying a house.

Owning a house has several advantages and disadvantages.

Having said that, it’s best to weigh the pros and cons of buying a house. This will help you make the right decision.

It Saves Money

“Should I rent or buy a house?”

Buying a house saves money.

Buying a home can be expensive because you have to pay a large amount of money before you can use it.

However, buying a house is actually more cost-effective in the long run. It doesn’t require you to pay lots of money over time like renting.

Buying a decent house with a reasonable mortgage can actually cost less on a monthly basis. However, keep in mind that this depends on where the house is located.

According to The Rent vs. Buy Index on Trulia.com, buying a house in major cities is more affordable than renting. The study they made from early 2017 tells us that it’s still cheaper to buy than rent in all of the 100 biggest U.S. metro areas.

There are only a few large cities like New York, San Francisco, and Seattle where renting is less expensive than buying a house.

Everything Belongs to You

“Should I rent or buy a house?” If you choose to buy a house, everything belongs to you.

Unlike in renting, every change or alteration you make to your house belongs to you. You can enjoy every bit of your property as long as you own it.

Renting a home has limited privileges.

For instance, the number of utilities or space that you can access if you rent a house is limited. This depends on your rental agreement with the property manager.

In addition to that, the improvements you make to a rented house belong to the homeowner. You can’t take them with you when it’s time for you to leave or move out of the rented property.

You Have Privacy

“Should I rent or buy a house?” You have privacy if you choose to buy your house.

Having your own house gives you privacy. Living in your own house gives you total control over everything.

Being a homeowner allows you to do everything you want to do. Nobody else can dictate how will you behave inside the property.

You can renovate your house and make changes that suit your taste and desire. Unlike renting, nobody can enter your house sans permission, even if they give you notice.

Cons of Buying a House

Should I rent or buy a house? Before you answer that, you should know the cons of buying a house first.

The pros of buying a house give you a reason why it’s better to buy than rent. However, keep in mind that buying a house has disadvantages as well.

The disadvantages of buying a house can put you in a serious situation.

“Should I rent or buy a house?” Take a look at the cons of buying a house:

It Locks You In

“Should I rent or buy a house?” Having a house locks you in. Homeowners can’t move to a different house immediately.

Being locked in is a huge disadvantage especially if you have lost your job or have a job in a different area. Apart from that, you’re also locked into your financial responsibilities.

Even if you’re experiencing financial difficulties, you’re still obligated to pay your mortgage or you will default on the loan.

Defaulting on a loan results in serious consequences. Your lender has the right to take possession of your house.

You’ll Have Lots of Responsibility

“Should I rent or buy a house?” If you’re about to buy a house, make sure that you’re open to responsibilities.

House owners are completely on their own. That means you’re responsible for all the repairs and maintenance required in the house.

This might cost you a lot because repairing damage to structures can be expensive. You’re the one who’s going to buy the needed materials and hire utilities and a repair company.

There Will be Tax Responsibilities

“Should I rent or buy a house?” Keep in mind that you’re going to pay taxes if you choose to buy a house.

Homeowners have to pay property taxes. The cost of purchasing a house is just one of the expenses that you’re going to have.

There will be a lot of expenses coming your way if you choose to be a homeowner.

The amount of the property tax can be calculated by multiplying the property’s assessment and the property tax rate. However, the overall amount is usually based on your location or jurisdiction.

Pros of Renting a House

“Should I rent or buy a house?”

Many people are renting a house instead of buying one. Renting has advantages that are good for personal and career growth.

To give you an idea about it, here are the pros of renting a house:

It Gives You Flexibility

“Should I rent or buy a house?”

Tenants can decide the length of their stay on the rental property. They can move out to a new house whenever they want to.

This is possible as long as they give notice to their landlord or to the property manager.

The flexibility gives tenants room for personal and career growth. Their rental contract allows them to plan their budget.

This also allows you to move out whenever your job requires you to move to a different location.

Tenants can also move to a smaller or bigger rental space. They can adjust the space of their rented property based on their need or lifestyle.

You Don’t Have Many Responsibilities

Landlords and property managers are the ones who are responsible for many aspects of a rental property.

They are the ones who will make the necessary repairs whenever there is damage to the rented property.

This allows you to just focus on your interests and career.

In addition to that, property managers are also responsible for the upkeep of utilities and maintenance of the rental property.

They’ll usually take care of the necessary paperwork for paying for the taxes or utilities.

“Should I rent or buy a house?” It’s your choice!

Fewer Risks

Should I rent or buy a house?” You should know that renting has fewer risks.

Unlike purchasing a home, renting has few risks. You can’t lose the property if you fail to pay the rent. The property manager will just ask you to move out.

You can also use the security deposit to cover the unpaid rent. This allows you to move out without having an eviction process.

Moving out without the eviction process prevents any negative items from appearing on your rental and credit history. This helps you rent and leave a property without any complications.

Cons of Renting a House

Should I rent or buy a house?” Before you answer that, you should also know the cons of renting a house.

There are also advantages if you choose to rent a house. The disadvantages can also result in serious consequences.

With that said, make sure that you can take on the responsibilities of being a tenant. This can help you decide the right answer to the question “should I rent or buy a house?”

Renting Is Expensive

Should I rent or buy a house? Make the right decision. Keep in mind that renting is sometimes more expensive.

Many people are renting houses because they can’t afford to buy one. The base amount of monthly rent is what attracts tenants.  

The cost of renting a house for a long time is almost the same as the cost of buying a new house.

Some rental properties have additional charges. The rent can also cover the cost of the utilities, maintenance, and property tax.

In addition to that, you can’t control the amount of rent. It might increase as time passes. The overall amount of rent depends on several factors.

The rent usually depends on the value of the rental property on the market and the cost of utilities.

Should I rent or buy a house?” It’s best to weigh your options.

Not All Landlords Are Good

Should I rent or buy a house?”

You should be careful because not all landlords are good.

Not all property managers and landlords fulfill their responsibilities. Many of them also fail in managing the rental property business properly.

Having a bad landlord can affect your life. They can even invade your privacy and give you stress.

Many tenants move out because of their landlords. Their disputes range from simple arguments like failing to put trash in the proper place to serious ones like failing to repair the damage to the rented property.

Most disputes are brought to court. If the landlord wins the case, you might have a hard time renting a different property.

Many property managers deny rental applications from tenants with bad rental history. So make sure that your next landlord has a good record.

Safety Is Not Guaranteed

“Should I rent or buy a house?”

If you rent a house, your safety is not guaranteed. That’s because there are many tenants inside a residential property.

Many of them have a different background and personality. You’re not sure if your neighbor is a good one.

Every rental property business has a tenant screening process. But many bad tenants can also pass the tenant screening process. They can fake their documents.

That’s why it’s possible that you’ll have a bad neighbor next door. Criminals often rent a house because it allows them to move from different places immediately.

Final Thoughts on Should I Rent or Buy a House

In this blog post, I talked about choosing between renting and buying a house.

You should make the right decision because acquiring a house is a big financial investment. This can determine the success of your personal life or career.

There are many factors that can affect your decision. Be sure to check the pros and cons of buying and renting a house.

Should I rent or buy a house?”

Make the right decision!

If you have more questions on should I rent or buy a house, leave them in the comments below.

 

 

Suggested Articles:
1. Improving Profitability In Your Commercial Real Estate For Rent
2. Landlord’s Checklist Before Tenants Rent Commercial Property
3. Guide To Creating A House Rental Contract

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Article: Renter’s Guide: Should I Rent Or Buy A House?

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