There’s no place like home. You will often hear people saying this out loud but what we are talking about here is completely different. If you think about it, a place that you rent does not exactly give you that “warm home” vibe. For one, the biggest drawback that most renters face is that they are not allowed to decorate the house.
Imagine living in a place for more than 5 years and not being able to decorate it according to your liking! Today, many people think that by renting a place, they will save more but will you? It’s a debatable question because while you do feel you are saving more, you are in fact letting money slip through your hands like water.
We all are striving for our American Dream to come true, and that definitely includes a house that is in your name. Here is a comparison list on why buying a house is a much better option than renting one:
Your house is not just a piece of property. It is an investment that will help you in the future during hard times. Every month, the amount of loan you pay back, you build your house’s equity. Your ownership on the house increases with every payment, until you have paid off the entire loan and can now do anything with the house.
Say, you have fallen on hard times and need instant cash. If you have paid your loan, you can take out a second mortgage on the house. Second mortgages usually have low interest rates because part of your house is up for collateral and your lender trusts you because of your previous business dealings.
A Source of Potential Income
Getting fired is probably the toughest situation a person faces. At times like these, you are burdened with all the bills that you need to pay but don’t have any source of income. Here’s where your own house comes to the rescue. It’s quite simple – rent out a portion.
Decorate the house to your liking and remember, every repair or renovation you get done with will go into building your equity.
· No Future Savings
Monthly rent, maintenance, repair, extra charge for pets and the yearly increase in rent, all these expenses can empty your pocket.
·No Control over Costs
In some areas, landlords operate on a yearly lease basis and this involves increasing the rent form 10% to 20%. You never know when this will happen thus forcing you to pack up and leave.
Anything you put in to make the apartment a better place will be a total waste of a time. So, it’s better to stick to the maintenance and hope that the landlord fixes the dripping faucet.
A debate on renting vs. buying is more about what offers you more comfort and what will benefit you in the long run. Steve Bhalla is a real estate agent, who with his team helps you in buying a house within your budget. From home inspection to mortgage and taking care of all the legalities, his team of agents make sure that you have a stress free buying experience.