Are you wondering whether to rent or buy a house? It makes sense that you would ask yourself the question – is it better to rent or buy a house?

Rents are rising at the fastest rate for the past two years. There is no shortage of reports of landlords taking advantage of renters. And that’s before we get to the broken refrigerator and tasteless designs.

If you already have the money for the down payment, you should definitely consider buying a property of your own instead of renting. But before you make a decision about what’s right for you, let’s take a look at the pros and cons of renting a house vs buying a home yourself.

Why Do People Rent?

Of course, even though it’s clearly better to buy a house for most people, there are some positives to renting your home. But what are they?

1. Flexibility

If you purchase a property yourself, you cannot up and leave at short notice. You would have to sell the property or find a renter of your own.

However, if you negotiate a short-term rental, you can suddenly decide to travel or relocate without any problems.

2. Save Up

Even though over time it’s more expensive to rent, you can save money in the short-term.

If you rent an already furnished property, you don’t have to purchase anything. Plus, there are no property taxes.

3. No Maintenance Costs

What happens if the boiler breaks-down? You simply call your landlord to send someone to fix it. Although this might be annoying and take time, you don’t have to pay for the costs of maintaining the property if you only rent.

What are the Cons of Renting?

However, there are plenty of cons to renting that you need to know before you decide whether to rent or buy a house.

1. No Freedom

Do you want to decorate your wall? Do you want to retile the bathroom? Do you want to get a cat?

You have to ask your landlord every time you want to change anything in your rented property. You may not even be allowed to hang a picture without requesting permission from the owner of the property.

2. Waste of Money

With renting, every single month you’re throwing away money that you could use for mortgage repayments.

3. A Rise in Rent Payments

After your rental agreement ends, your landlord can increase your rent. If you’re living in an especially desirable location, your landlord is probably going to regularly increase rates.

Why Do People Buy Homes?

Now we’ve covered the pros and cons of renting a property. What about why do people buy homes?

1. Financial Stability

Your mortgage repayments are probably set at a fixed rate, which means they don’t increase year-on-year like your rental payments.

Since your own the property yourself, you won’t be forced to leave the property. If you’re looking to settle down in one place for a while, investing in property is a sound financial investment.

2. The Pleasure of Owning Your Own Home

By buying your own home, you can develop a sense of pride in standing on your own two feet. You can decorate and design every room to be exactly how you would like it. You can’t really put a price on the feeling of home ownership.

2. The Financial Investment

Property prices have always been a safe financial investment. However, this remains truer now than ever before. House prices are now rising faster than they have for 12 years, according to Property Wire.

You can even purchase your home with credit, make home improvements, and sell the property for a profit.

3. Tax Benefits

You can also benefit from the numerous tax incentives to buying your own home. This includes property taxes and mortgage interests deductions to make it more affordable for first-time buyers. Make sure you consult your accountant to find out more about how you can benefit from buying a home.

What are the Cons of Home Ownership?

It’s easy to be convinced by the benefits of homeownership. However, it’s not without cons.

1. The Cost of Buying a Home

If you have the money to buy your own home, it definitely makes sense compared with renting a property. However, it’s important to know about the different costs involved in buying a property. These include among other things:

• Down Payment
• Mortgage Repayments
• Closing Costs
• Insurance Policy
• Estate Agent Fees
• Property Inspection

While this may seem a lot at first, it’s worthwhile in the long run.

2. You Lose Flexibility

Once you purchase your property, you can’t suddenly up-sticks and leave. At least, you have to sell the property again before you can move somewhere else.

You have a responsibility to pay your mortgage payments and maintain your new home. However, if you’re settled with a family, why would you want flexibility when you can enjoy the comfort of your own home?

Is It Better to Rent or Buy a House?

You should already know the answer to – is it better to rent or buy a house? It’s quite obvious that buying a home is the best option for most people.

If you can’t afford to a buy a property yet, you better get saving. At the moment, you’re throwing away your monthly rent, when you could be paying off your mortgage to own your home outright.