03 Dec House Buying vs Renting – The expert guide to choosing what’s best for you
The choice to buy a house or to rent one is one of the most important ones that you will make. In this part of the world, being a homeowner is associated with respect and is seen as a significant achievement.
Renting, on the other hand, is seen as “dashing money to the landlords”. Most people see it as the temporary and money-draining alternative that should stop as soon as you can afford to buy or build your own house.
However, there are other factors to consider when choosing to buy or rent a house besides the financial implication.
Note that there is no one-size-fits-all answer that makes renting better than buying or buying better than renting a house. Instead, some pros and cons will help you make the right decision regarding whether to buy a house or to rent one.
Pride of Ownership: This is one of the most important benefits that people get when they choose to buy a house rather than rent one. Though intangible, the pride that comes with being a landlord and being able to do as one pleases motivates many to get the money and all that is needed to buy a house and become a homeowner.
In deciding whether to buy or rent, consider what is important to you and where your life, family and career are headed. If it is more fulfilling to become a landlord and have a stable place to raise your family, then buying a house may be the option to take.
On the other hand, if you rent a house, you may have to change houses a couple of times and with the cloud of annual rent hanging over your head, that feeling reserved for homeowners will never be felt.
100% design control: If you buy a house rather than rent one, you have greater control over how it looks. If you do not like something about it, you can change it. The only factors that can limit you are money and the feasibility of what you want to do. Other than that, you can make your house look the way you want it.
As a renter, you have very little, if any, control over how the house looks on the outside or the inside. If this is a big factor or a dealbreaker for you, buying your own house can be a better choice in the long term.
Building equity: Real estate offers solid investment options for people and one of them is buying a house to sell it later. If your long-term plan includes owning a house and reselling it at a later time for profit, then buying is definitely the option to consider.
You can build equity as the value of your house appreciates in the market and make a profit when you sell it later. Keep in mind that economic factors can cause the value of the house to stagnate or even depreciate as well and this may mean that your investment turns no profit. If you are aware of the risks involved and still willing to build equity, renting a house will not help you to achieve that goal.
High downpayment/building cost: It is expensive to build a house or to make the downpayment on one. This is one of the biggest reasons why most people prefer to rent a house instead of buying one. The cost of renting a house can be paid monthly, quarterly, bi-annually or yearly and it is usually less expensive compared to buying a house outright.
Depending on your budget and long-term financial plan, you may find that buying a house is not feasible yet. It may be more financially comfortable for you or your family to pay smaller sums of money for rent than to buy a house.
Recurring maintenance cost: As a renter, if the house you live in needs repairs or maintenance, the person that pays for it all is most likely the landlord. But if you are the homeowner and the house needs repairs, the person who is most definitely going to pay for it all is you.
Different parts of the house will continue to require maintenance over the years and this will always be a financial burden for your shoulders. Before taking on these forever recurring costs, you should check your long-term plans and finances to be sure you can bear them comfortably.
Long-term commitment: One of the sweet spots of renting a house is that you do not have any long-term commitment to the house. You can choose to move completely from one area to the other without worrying about the upkeep of the house.
Even if you’re not moving completely, you can travel for long stretches without having to worry about the house because you are not the owner. Buying a house takes away this flexibility from you because you need to be available, or pay someone else to be available in your stead, to make sure that everything about the house is as it should be.
At AMDC, we have cost-effective solutions for you whether you decide to be a renter or you choose to buy your own house. Rent4less is our affordable renting solution that provides houses in good locations and excellent conditions. Renting on Rent4less is a better solution for you if you choose to rent because you can pay your rent monthly or quarterly instead of moving heaven and earth to pay a year’s rent upfront.
You can also become a homeowner through Green Park Estate, our eco-friendly and low-cost housing solution for prospective homeowners. We also have an array of end-to-end mortgage options starting from as low as a 6% rate to finance their purchase.