Renting or Buying a Home: Which One is the Better Option?
Buying a home might be one of the biggest decisions you will make in your life but is it the best investment to make? Should you pay for property you will call your own after so many years or rent an apartment and put the money you save somewhere else? Let’s look at the possibilities between renting and buying a home:
When is renting a better option?
One of the reasons for you to be a tenant is your job. Are you someone who has to move from one place to another after a couple of years because of your profession? If this is so, renting might be better for you. Next, you might also try to live in a neighborhood for a while to see if this is the area you want to invest in property in the future. This can save you money and trouble in case you decide you want to settle somewhere else. Lastly, your income is another important distinguishing factor that will affect your decision. If you have an unstable job or if the house you intend to buy is more than what you can pay for, then investing in one is not a good idea.
When is buying a house better than renting one?
If you intend to live in a house for at least seven years, investing in one should be your choice because by renting, you pay for the landlord’s equity instead of your own. Moreover, when it comes to taxes, you will be getting deductions from your mortgage expenses as well as other tax deductions if you use part of the property for your business. Lastly, you can have a hand on how you want to decorate the home, whether you want it renovated or repainted after some time. A rental property does not allow you to do this.
Given the different possibilities, it is easier to make up your mind whether renting a home or buying one is right for you.