Renting vs. Owning A Home

June 24, 2019
Renting Vs. Owning A Home1

What is the difference between renting and owning your own house and lot?

  1. Reasons to rent
  2. Reasons to own
  3. Disadvantages: renting vs. buying a home
  4. Which is better: buying a house or renting an apartment?

 

When starting a family, one of the key things you should be looking out for is an affordable house and lot for sale. A home for a starting family is an investment as your future children will one day run through its halls. However, you will also need to take into consideration your current living situation.

Try to imagine where you will be in five years as this can be beneficial to making this life-changing decision. You will need to take these factors into consideration in order to balance the pros and cons of buying vs. renting a house. Read on to learn more about the pros and cons of renting vs. owning a home.

 

Reasons to Rent

There are a number of perks to renting versus owning a house. One of the main reasons is that it will provide you and your starting family more flexibility regarding any sudden changes that may happen through the years. Another main reason is that renting a home will cost significantly less than purchasing a house. Let’s take a look at exactly why these two advantages are crucial points to remember before you make your decision.

 

More Flexibility

As a starting family, you are more likely to have changes in your lifestyle. Whether that is in the form of relocation due to a future promotion or if it’s the number of children that you may have. Renting a home is a short term commitment that is the most ideal option if you are expecting to move away in the near future. When the time comes, moving out will also be significantly easier as you will only need to move the necessary furniture. You will not need to find someone to take over the lease.

 

Can Save Costs

Another major advantage of renting a home is that it can greatly save you costs. The costs that you save by choosing to rent can be redirected to another part of your family such as various investments for the future. And finally, the cost of home maintenance will not be under your responsibility, but rather on the homeowner.

 

Reasons to Own

Reasons To Own

Owning a house is a long term investment for your starting family. By investing in a home early on, you are ensuring that your family will always have a secure place to stay in. This long term investment also gives you greater freedom with what you can do with the property itself, from construction to redesign.

 

More Security

As a starting family, it is important to think about the future. Think about where your future children will sleep, and take into consideration how many you are expecting to have. Choosing to invest and stay in one place for an extended period of time can also help you create a sense of community with other homeowners around you. Owning your own home can give you long term security.

 

A Long Term Investment

Deciding to own a house means that you will have the freedom to turn it into your dream home. You could choose to change a part of its architecture or you could change the color scheme of its interior and exterior walls. You would not have the same luxury if you chose to rent instead. Another advantage is that over time the value of your home will appreciate, which could lead to a good profit if you eventually do choose to sell the home. Buying a house and lot can also give you the opportunity to embed yourself and plant roots in a community that you have always been interested in.

However, besides its advantages, there are also specific disadvantages to buying vs. renting a house.

 

Disadvantages: Renting vs. Buying A Home

In order to find the best option for you, you must also take into consideration the disadvantages of renting vs. buying a home. This can help you gauge what would most fit your ideal family scenario.

 

Disadvantages of Renting a House

As mentioned above, the freedom of renting a home also comes with a cost. As a tenant, you are limited to the changes you can do to a property. If you are interested in changing a certain part of the home, you will need to take it up with the homeowner. The difficulty of this is usually there is a third party involved that can slow down the process. Rental agents will be the middleman between you and the homeowner.

Another disadvantage of renting a house is that there is little to no return on investment. As the tenant, you will be paying the home loan of the owner. If they choose to sell the property, the income will completely go to the homeowner.

 

Disadvantages of Owning a House

The initial challenge of owning a home is financial responsibility. Buying a house will take a huge cost out of your budget, which means that you will need to prepare your finances will before you buy a property. Besides the down payment, there are also homeowner’s taxes that you will need to pay once you choose to own a home. Maintenance and insurance costs also need to be accounted for.

Another disadvantage of owning a home is that the huge investment will render you unable to move away for a number of years. If you are thinking of moving away after a couple of years, then it may not be ideal for you to buy your own home. If you choose to resell your home, a number of factors such as the economy or high-interest rates may possibly make it difficult.

 

Which is Better: Buying a House or Renting an Apartment?

Which Is Better Buying A House Or Renting An Apartment

Renting an apartment and renting a home have similar advantages and disadvantages. They are both flexible, giving you the ability to move to another property if the need arises. Both are cheaper compared to buying a house, which could greatly help your savings. However, a starting family should be investing for the long term.

As your family begins, you will need to learn the concept of settling down into one location. This is in order to give your children a sense of security, instead of moving them around from place to place. It will also give you and your spouse a sense of security, as you will not need to worry about getting approval in terms of renewing your lease. So, which is better: buying a house or renting an apartment? For starting families, buying a house would be the most ideal investment for your future.

 

Key Takeaway

There are a number of factors to take into consideration when choosing between buying vs. renting a house. You will need to balance out your present life with your future expectations when trying to make this life-changing decision. If you are interested in homes that are perfect for starting families, take a look at NextAsia Land’s affordable properties such as those found in NextAsia Lipa in Barangay Latag.

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