To buy property or to rent property, that is the question. Are you a renting and looking to buy a home or are you a home owner looking to rent. When it comes to renting vs buying a house here’s a list of some of the pros and cons.
Flexibility vs Stability
Owning a home
Pro: Home ownership brings intangible benefits such as a sense of stability, belonging to a community and pride of ownership.
Con: However, if you’re the restless or nomadic type then buying a house might not be a good move for you. As changing your mind about where you want to live is far more expensive when you own. As you might not be able to sell when you want if the housing market is down, and even if it’s up, there are significant transaction costs when you sell.
Renting
Pro: Renting provides flexibility meaning you can move without penalty each time your rent ends.
Con: But it also means you could have to move suddenly. If your landlord decides to sell the property, turn your apartment complex into condos or bump up the rent by more than you can afford.
Huge financial responsibility
Owning a home
Pro: It’s a good financial move and a form of investment.
Con: Finances can become a bit unpredictable at times when you own. You might pay nothing more than your bond and regular bills one month. And all that, plus thousands on a new roof the next, which homeowners’ insurance may or may not cover.
Renting
Pro: There’s financial predictability when you rent, you know exactly how much you’re going to spend on housing each month. And your monthly, home-related expenses, such as renter’s insurance, tend to be more predictable.
Con: As a renter, though, you do face unpredictable rent increases each time your tenancy is up for renewal. And if you live in a desirable part of town, rent increases can be steep.
