Renting a house or buying your own home is one of the biggest decisions to make while we turn into adults. This decision, although a difficult one, depends on a simple factor, i.e. your requirement based on your income and family planning.
You know you’re ready to own a house once you’re sure that you can financially commit to it. This also means that your budget should be able to cover the property taxes and at the end of the day, there is also enough savings which can support your retirement. Owning a house of your own means that you get to personally customize your interiors anytime you wish to, but also that you are responsible for all the extra charges such as electricity supply, water leakage problems etc. This is not the case when you are renting a house. You are only required to pay a fixed amount every month which covers all your amenities as well as helps save the additional costs of repairs as these are generally covered by the landlord or the management company.
But, owning a house is not just about financial commitment. It’s the second ‘F’ which stands for Family! If you are hoping to settle in a particular place in the near future, then buying a house you can call your own ‘home’ is the best option as it provides you with financial as well as emotional security. There is also the benefit of selling the house at a higher price and gaining profits, if you ever decide to move out. Renting a house is for those of us who are probably hoping to relocate in order to find better living conditions. This also helps us in investing the extra money that we have not spent in owning a house. There is also the case of property tax, which in the case of renting a house, is paid by the property owner, whereas if you own the house, you have to pay them, though mortgage interest payments are tax deductible.
There are a certain number of rules pertaining to staying in a rented place. These can include not having your own pets or only allowing guests at certain timings of the day. One can also face problems in storage space, which leads to paying extra for a storage unit along with the parking space charges if you’re living in an apartment.
This decision also depends on how one handles his/her finances. Owning a house saves you from the trouble of paying a certain sum every month per annum, whereas renting a house means planning your expenditure in such a way that you have to pay a rent every month, also keeping in mind that the landlord can ask you to move out if he decides to sell out the place.
Most importantly, affordability should always be kept in mind while making this decision as your emergency funds should never be jeopardized when it comes to living a comfortable life.