Buying a house is probably one of the biggest financial decisions you’ll ever make, if not the biggest. However, the decision-making process alone is no easy feat since you know it would involve your hard-earned money.
On the other hand, while it is a convenient option for some, renting incurs a regular expense that weighs on the household’s monthly finances. Another sad part is you keep paying for something that will never be yours.
Before you make any decision, wise up through knowing and weighing the pros and cons of each.
Primarily, our home is our source of pride. Owning a house and lot provides personal satisfaction and something not apparent if you are renting. Also, knowing that you are providing a safe place for your loved ones to live in is very rewarding.
Secondly, you have control over your property. You have the flexibility to make improvements/renovations.
Thirdly, it’s an investment. You can use this as a cushion during difficult times. The value of property appreciates over time. You will earn a sizable profit should you decide to sell it. Or, it can be a good source of additional income if you’ll lease it out.
Owning a house is an enormous financial responsibility. You’ll shoulder all the expenses. For instance, the real property tax that will be accrued must be paid yearly. If the house you bought is located within a gated community, chances are, there’s a homeowners association that requires a monthly to accommodate the operation and maintenance of common areas. Not to mention, the monthly mortgage repayments.
Aside from these, upkeep and maintenance costs are at your expense as the owner. If you buy a single home from Amaia Scapes General Trias, for instance, you will be responsible for adding specific features if these are not available in the neighborhood or nearby.
As a renter, you have fewer responsibilities. While you live in the place, the house’s upkeep is still at the landlord’s expense. You can save money that’s otherwise devoted to maintenance costs if you own the place.
Some conditions are also favorable to the renter. You can rent the place by yourself or have a friend live with you so you can share the rent and other expenses (and save more money). You can always look for another place to rent out if you are not satisfied with your landlord and his or her terms or if the needs arise (e.g. job relocation).
Depending on where the house or apartment is located, rent costs could be as high as what you would be paying for monthly repayments.
You cannot touch anything if you want to repair or renovate unless you have the permission of the landlord. Also, you have less control over your landlord’s decision. For instance, you have no choice but to find another house when the owner decides to sell the property.
Knowing these advantages and disadvantages, you can now decide whether buying a home is a sound decision or not. Homeownership is downright wise, but if you cannot afford to buy one now, renting is the better option in the meantime. And while renting, build your capability and credibility, so when it is time to buy your first house, you will be financially prepared.