Both buying and renting a house or apartment have their own sets of positives and negatives.
Though the choice between the two may not arise often, knowing the differences between them can help steer your future in the direction of either in that you now know which one you are working toward.
If you live alone, renting might seem like a better option when compared to living in a house, but the decision of whether to buy an apartment is still a possibility. Almost the same points for and against buying a house apply to buying a flat or townhouse, with the exception that most such living accommodations include services in your rates and levies, which houses do not.
The Pros and Cons of Buying
Buying a house can be very bothersome:
- Not everyone has the financial backing to get their hands on the (expensive) property they want.
- It can be quite time-consuming as well and the process can easily take many weeks or month(s).
Plus, in the end, you might still be turned down for a loan.
These two above-mentioned struggling points form the main reasoning why most people today opt for renting instead.
Owning your own property is also a massive responsibility:
- To some, this might seem like a good thing, but to others, it could cause unnecessary stress and additional work, as there are lawns to mow, upkeep to be handled and a dozen other small things that need constant maintenance work.
- Doing it yourself can be great fun, but if DIY is not your strong point, paying someone else to do it will cost extra.
Speaking of lawns, gardening and cleaning services are essential services that you may have to pay for yourself unless, as mentioned, it is included in the fee that is paid to the body corporate on a monthly base.
Being a homeowner and being in charge of your own surroundings has its challenges, but these are outweighed by the plus-points:
- Moving from an apartment block to a house with a garden and space between you and your neighbours has a generally positive effect on your wellbeing, particularly if you need your own space. You could even start that vegetable garden you’ve been dreaming of.
- Creating a home can feel much easier as you can paint, decorate and build as you please, something that most landlords would not allow, along with a lot of other things in the fine print.
- Having somewhere to call home grants a sense of stability and security to your life as there is no clause stating that you could be asked to move at any point.
- And in the long run, it saves a large amount of money per month once the mortgage has been paid off.
The Pros and Cons of Renting
Renting your house has a set of challenges and comforts that are often on the other end of the spectrum:
- Services, as well as water and lights, are included often in the rent, meaning no extra bills or contracts to keep up-to-date contest. In other words, no financial surprises as a tenant!
- It gives you flexibility which might be necessary for your occupation and frees you from responsibilities such as maintenance.
- Security is also no longer in your hands, which could turn out to be either good or bad, depending on your sole situation.
On the other hand, we need to stay realistic and acknowledge that are there are a couple of shortcomings when renting:
- You might struggle to find a place that is big enough for you to keep pets or even a place that allows them on the property.
- If you are alone or live with someone, a smaller dwelling is perfect, but for families, a larger house might be the better choice.
- Renting a (large) house can be rather expensive and in most cases, buying might be the better option.
In the end, each person’s situation is unique and understanding the short and long-term effects of buying versus renting can help you make decisions that positively impact your home life.
What did you use as your pros and cons of buying vs renting when making the call on your current living circumstance? Feel free to share in the comments below!