With an upsurge in the current real estate trends, more and more people are inclined to buying homes rather than renting apartments. However, there are numerous factors to consider while making the decision whether to buy a home or rent an apartment. This is because both renting and buying a home both present an array of challenges. With market prices constantly fluctuating, you can never be sure that it’s the correct time to buy a home. In order to decide the best option to take, it is paramount that we consider the pros and cons of renting an apartment vs. buying a home.
The Pros & Cons of Buying a House
It may seem as a best option for many people to buy a home. Yes that true. Even so, owning a home presents numerous challenges. Let’s take a look at both.
Pros of Buying a House
- Owning a home is a form f an investment. It provides some benefits that last long like equity, security and a greater potential t expand your wealth.
- As an investment, your home will appreciate in value over time. So you will be sure to get a profit when you finally decide to sell the house.
- After completing the transaction with the seller and signing the relevant deed forms, the home officially becomes your property. This means that you will have a greater freedom to d anything with it without any restrictions from anyone, unlike an apartment where you’ll l have constant supervision from the landlord, or noise complaints from neighbors.
- Owning a home gives you power to alter it the way you deem fit. This includes décor, landscape, and any other renovations to suit your taste and preference. This can’t be done in an apartment,
- Owning a home enables you to generate income by renting the house if you don’t want to sell the property, or renting out one or two rooms.
- As a home owner, you have the chance to impress the banks by repaying your mortgage debt on time. This ultimately increases your credit score.
Cons of Buying a House
Although it may seem a good idea to buy a house, it comes with a lot of responsibilities and disadvantages. They include;
- With huge financial responsibilities like house maintenance, utility payment and bond repayment, owning a home can be a bit expensive.
- Owning a home does not only mean that you will have to pay the agreed amount. There are hidden costs like taxes, insurance, rates and maintenance for which you as the home owner are liable to pay.
- There is a risk of getting a loss through a resale due to economic factors and the nature of the real estate market.
Pros of Renting an Apartment
- Renting an apartment allows you more flexibility especially if you don’t intend to stick to one place for long. It requires no actual commitment and you can move away whenever you feel like. This is especially ideal for people with flexible jobs and who move around a lot.
- Renting an apartment gives you an opportunity to live in a house that you couldn’t possibly afford to buy.
- There are no responsibilities attached with moving out as you will not be tasked with finding a buyer like a home owner.
Cons of Renting an Apartment
- Upon signing the lease agreement, you will be bound by all the rules thus you won’t have much freedom.
- You have no guarantee that the lease agreement will be renewed if it expires.
- You won’t have control over any rate fluctuations, unless you’re living in a rent-controlled area.
Overall, the move between an apartment and a home requires many factors to be taken into consideration.