Renting or Buying – Which is The Better Option?

Is it better to rent or buy a house? If you are in a dilemma with this question on your mind, then here are few comparisons between renting and buying that would help you to come into a conclusion.

Whether you have planned to rent or buy, both has their own impact based on the city in which you live, for example buying a house in one city may be value for your money and renting a home in the same city would be a money drain.  If you have decided to buy or rent a home in a city, then here is the key question, which you should ask yourself, how long are you going to stay in the city as it would have more impact on your money.  If you are staying for a long period of time and the rent is more than in order to save your money you can opt to buy a home, which is also a better investment option.

But in recent years, buying a house has become a better investment and if you are staying in a city for sort period and changed your mind to settle-down in the city then it is undoubtedly buying a house the best deal.

Location

Planned to rent or buy, firstly all you have to do is to dig into current strategy in the area.  Most of the people prefer location whether for buying or renting, considering the factors like closeness to workplace, transport, and other aspects.  So, if you have planned to buy a house check for the returns on your investment that the area can give you in future.

Duration of your stay

Renting a house is the perfect option if you have planned to live in the city for few years say about three to five years and if you buy a house in that time, you might not get the return on your investment and if you have to sell to within 3 years, then definitely it is a loss as you will lose about 6-7 per cent of money through tax and commission.

Maintenance

Buying a home not only makes you an owner but also carries more responsibility as you have to maintain the building any repairs or fixation would cost you, whereas by renting a house will make you relieve from such extra burdens.  If you are completely aware about the maintenance costs and ready to take the responsibility then it is better to opt for buying a house.

Down-payment cost

Before buying a home, you should at least be ready with 20% of the cost of the house, which you have to pay as down payment.  However, upfront costs for renting an apartment generally includes a security deposit, which you can recover at the end of your agreement if no damage is done.

As a buyer, you can also enjoy low interest rates and being landlord.  If you think that you don’t have the 20 per cent amount to pay the down payment, then it would be better to keep away your play to buy a home for some time and to rent a home.

Return on investment

Before buying a home also consider the current real estate strategy, the property value and the future returns, if the prices are high then it is a good sign for property sellers so watch carefully the real estate market strategy and then decide. 

Normally, investing on a house is a good profit until and unless the market value is in buyers favor and on the other hand, if you rent a house, you will never get back the rent that you pay for a house.

So, the answer to whether to rent or buy again depends on the circumstance, for people who are in their forties, it is a better idea to buy a house and if you are younger then better to stay on rent.

For more articles on realty business visit Sovereign Developers Reviews official blogs