While comparing the options of buying and renting, the scale of buying out-weights the scale of renting, because there are certainly more benefits in paying monthly payment for mortgage instead of rent. To understand this notion in detail following are some important points:
Personalizing the Property
The place that you rent is not in your ownership thus you can do almost no changes in it.
Whereas, owing a home gives you the ability to do any changes in the property; be it a change in color of the walls, installation of any new equipment in the house or a luxurious remake you had been thinking. At times these renovations will result in increasing the value of your home as well, thus this would be a much better situation to be in.
Investing in a house is better in many ways when compared to other investments like purchasing stocks. The reason for that is:
- You get a tangible daily living benefit in case of investing in a house
- The home appreciates sometimes faster than stocks do (in economical boom)
- The appreciations are usually higher than other long term investments
Rent increases while the mortgage amount doesn’t change
The good thing about mortgages is, if you have a fixed-rate mortgage, its payments will remain the same and your ownership in the house will keep increasing.
While the problem with renting apartments is that finding a fixed rent building can be difficult. And if you don’t find one, the rent will keep increasing year by year.
With every monthly mortgage payment, you will be gaining more equity on your part. Unless you have found yourself a really expensive house, the mortgage payments will not be crunching up a big amount of your disposable income.
In contrast, as you pay your rent, the entire amount goes to the landlord and you have to save separately from your income if you want to purchase a house of your own.
In the end the house owner will get complete all of the mortgage payments and none would be then payable. But in case of renting the person keep on paying without any gain.
If you are buying home for the first time, your new house might probably have larger space than the previous rented apartment. Which means you will need to buy more furniture.
Your furnishing costs would probably differ as per your financial plan. Buying used furniture is also a good approach to decrease this cost. Because of this and other similar expenses one may feel that buying home will be very expensive but it does pay off down the road because it all will be an addition to your assets.
Basically renting is you paying money only to attain living rights for a certain period of time. Whereas buying is, you paying monthly installments and in return gaining living rights and property ownership along with it as well. The better option is obviously clear. You can find more information about buying properties and its procedure in our blogs.