Renting Vs. Buying a Home: Which One You Should Go For



One of the puzzling questions in everyone’s mind is whether to rent or buy a home. Many people believe that renting a home is waste of money. But is it really so?
If you are planning to buy a home or if it is in your list of targets in the coming future because you believe that renting is a waste of money then this article is for you. Before you make any final decision, you should consider the below-discussed points.

Expenses Incurred as a Renter vs. as a Home Owner
A lot of people think that instead of paying monthly rent every month, it is better to take a mortgage and pay the monthly instalment. They just overlook the other facts which come with buying a home apart from mortgage.
For example, the cost of moving from one place to another place, the maintenance cost of your home, insurance, renovation work, decorating, etc.
But when you are staying as a renter, you will not be responsible for all these additional expenses. So before you make any decision that buying a house is better than renting, consider your expenses as a renter and as a homeowner.

The Duration of Stay in Your Home
Owning a home can be very expensive if you are not going to stay in that home for a long time. Also, you won’t be able to make the equity of your home. The value of a home depends on many things such as area, neighborhood, economy, and other factors. If you sell your home very soon after buying then building equity is not possible and it can a loss for you. Hence, before buying a home you should first decide how long you are planning to stay there.

Are You Eligible for a House Loan?
Before you set out for buying a home, you need to check if you are eligible for a house loan. Obtaining a mortgage is not an easy task these days. Lenders consider various things before approving your mortgage application such as financial condition, income, credit score, etc.
It’s all about planning and researching and deciding what suits best for you. Although there are other loan options available such as doorstep loans in Ireland   but the amount provided in such type of loan is not large. So, it won’t help you much. But you can use these types of loans option for home maintenance or renovation purpose.

Owning a House is Not Exactly an Investment
Many people think that purchasing a house to live in is a kind of investment for them. However, they forget the fact that it is a primary residence for them like a shelter. Although, the value of your home will increase over time but you cannot sell your only residence where you are living. If you sell your primary residence then you have to look for another place to live in.
The only purpose of investment is to make money and in the case of primary residence, you cannot do it. For investment purposes, you have to purchase a home at a low cost and sell it when its values grow.
On the other hand, a rented house can be thought of as an investment as most of the costs will be bear out by real owners.
One more thing if you have some property then you put that on rent which will give you some extra money. Once you accumulate sufficient money then you can buy another property with this money. This is the current trend in the real estate market.

Bottom Line
Having discussed all the points, we can say that any option between renting and owning a house depends on an individual’s current financial condition and need. If one is financially stable and can afford a mortgage then it is better for them to buy a house. On the other hand, if one is not capable of paying a mortgage then it is better to rent a home and save money for future purchases. Nevertheless, it is your personal call to take. 

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