In many cases, contrary to conventional wisdom and societal pressure, renting can be a better option than owning. However, for some buying a house is something that they can have for a sense of stability and pride.
However, before you decide whether to rent or buy, you need to consider your budget. Write down your financial and saving goals and see if you have enough money for your housing goals. Make sure that you don’t spend all your money on housing alone, but you still have enough to spend for other family needs and save for retirement.
Here are some things to keep in mind as you weigh the benefit of renting against the benefits of owning and see which is a better fit for you.
Renting a House
One of the benefits of renting a house is there are no maintenance costs. Although you may not be able to personalize the house design, your landlord is generally the one who is in charge of repairs. Here in the Philippines, the maintenance costs are shouldered by the landlord and are deducted from the monthly rent.
Moreover, if you are renting a house, down payments are less compared to buying. Most landlords would require a one-month advance pay and a one-month security deposit. These deposits are returned to you when you moved out, provided that you haven’t made major damages to the property you are renting.
If you plan to move from one place to another or change jobs in the future, renting is a better option for you as it is easier for you to relocate. However, this would also mean that you can be evicted any time when the landlord decides to sell or use the property.
Lastly, if you are renting you will be able to plan your finances wisely as you will only have to pay for a fixed monthly rent. Although your rent might increase the following year, you still have the opportunity to budget your money wisely.
Buying a House
Buying a house can be the best investment you can make in your entire lifetime. Although the process of owning one can be challenging, the many benefits you can have can be worthwhile.
When you buy a house, you are building equity for your home and potentially see your home appreciate its value. This means you can increase your personal wealth and use the resources for your other needs.
Moreover, buying a house gives you living security. Compared to renting, you may eventually be evicted by the landlord at any given time, while owning one gives you security because you own the house. Also, you have the freedom to make decisions about the look and design of your living space.
Owning a house comes with a lot of expenses, like mortgage payments and rates, taxes, and many others. However, you can still have control over these expenses by estimating payments of your mortgages as well as other expenses. You may also opt to get a fixed home loan so you can manage your finances wisely.
What’s Best for You?
The decision is totally up to you. The decision basically depends on your lifestyle and most of all your financial situation. After all, renting or buying a house is a financial commitment that requires you to plan ahead.
