Having a secured roof overhead is everyone’s dream. Each of us has a dream of having a home. Renting or buying are different options while looking for a house. The decision of renting and buying depends on the financial condition of a person because both options require a sustainable income. Renting and buying are entirely different from each other. Renting is more flexible, whereas owning a house is a huge responsibility, but it is also an investment that helps in the long run. Here we will discuss the difference between renting and buying and find out which one is the better option.
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PROS AND CONS OF RENTING:
For many people, especially the young generation renting a house is much better than buying because they have a restricted budget. Renting is much more convenient for them because they can have a home of their choice without spending a lot of money on it. Renting has many advantages but also some disadvantages, which are mentioned below:
- LESS COSTLY:
Renting a house is a better option if your income is low as renting can be done for less money. You have to pay a security deposit to the landlord, and rent is paid monthly, much less than the amount you have to pay for buying a house.
- FLEXIBLE OPTION:
Renting is a flexible option because it is a short-term commitment, and you can move from that house by informing the landlord. You don’t have to worry about renting or giving the house to someone else because it is the landlord’s responsibility.
- NO MAINTENANCE COST:
A person living in a rental house does not have to worry about the maintenance expenses of the house because it has all been done by the landlord. Still, if the tenants have done any damage to the property, they have to pay for it according to the tenancy agreement.
- NO OWNERSHIP:
In renting, there is no equity. You pay thousands of rupees every month, but you don’t have any rights to your living property. The landlord has all the rights, and he can even ask you to leave the property with a short-term notice, and you have to leave it.
- INCREASE IN RENT:
The landlords can increase the rent of the house at the time of renewal of the agreement. The increased rate can be a problem for tenants because sometimes they can’t afford the high rent. This can affect their budget and lifestyle, and they have to look for a new house again.
BUYING A HOUSE:
Buying a house is like achieving a milestone. Owning a house also comes with some advantages and disadvantages, which will be discussed to determine if it is a better option.
Owning or buying a house gives you a sense of security. It is stable because no one can ask you to leave the house. After all, you are the house owner, and you don’t have to worry about moving again and again to different places.
- NO RULES AND RESTRICTIONS:
When you have a home of your own, you have no restrictions. You can change the setting of furniture or the house’s color without any hesitation. There is no restriction imposed on you by anyone else, and you can make any decision you like.
- OPTION OF EARNING INCOME:
Owning a house can also be a source of earning extra income. You can rent your house to someone else and earn money through it, or if you have some extra rooms or space, you can also rent it to someone.
- LOTS OF PAPERWORK:
Buying a house requires a lot of paperwork. Buying a house is quite complex, unlike renting—the sales deed, change of ownership, lease papers, etc. The owner also has to pay property tax for his property, which is also an increased expense.
- LACK OF FLEXIBILITY:
Unlike renting, owning a house is less flexible because you can’t move to another place quickly. For selling your house, you have to wait patiently for the potential buyer who buys your property at a reasonable price. This can take a few months and sometimes years also.
THE FINAL THOUGHT:
Renting and buying both have some pros and cons. You have to think about your budget for both options as it plays the leading role. Other than money, other things need to be understood before renting or buying a house.
Muhammad Junaid is senior Analyst, and Search Engine Expert. Extensive experience being an IT Manager in Park View City. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.