Is it better to rent a home or buy one? This is a never-ending dispute. While there are pros and cons to both these options there are plenty of reasons why smart people often end up renting a house. The choice really depends on your current financial situation and your financial goals. There are also other external factors that might end up influencing your decision. When you buy something online you might be able to save money by using coupons from places like Couponobox but how do you save money in real estate? If you are planning to buy a house the financial planning and budgeting should start several years in advance. Considering the ups and downs in both here are some reasons why renting is considered as a better option by several people –
Rent might be slightly less expensive than the mortgage
Monthly installment amount to be paid for the mortgage is not always as low as the rent. Depending on the size of the loan and the interest rate this amount varies. Even if you suddenly face some form of the financial crisis there is no option to bring down the monthly mortgage amount. But if you stay in a rented place, you can move to a house with a lower rent during times of cash crunch.
The sense of ownership is not complete with an own house
Till the day you complete the full repayment of the mortgage amount you do not actually own the house. Missed installments can lead to the banks taking over the property. So buying a house doesn’t really give you the full sense of ownership unless you manage to take a very small loan or no loan at all.
Besides the numerous other benefits of renting a house, the major advantage is your freedom to pack and move anytime you want. Depending on the contract with your landlord you might be free to move from one house to another within a short notice. But buying or selling a house takes a lot of time.…