Buy or Rent a House

When it comes to property, one of the most frequently asked questions is: which is more worth, buying or renting? While there is no single answer to this question; only by analizing its phase of life and making some simple accounts, you can reach the best alternative for your case.
When you are thinking about living alone or joining with someone you invariably gets put up with this one fundamental question, Purchase or rent a house? In this article, we will try to help you understand what is best for your case.

BUY OR RENT HOUSE?
In either case of buying or renting a house, there are advantages and disadvantages. The job security is a factor that has more impact on this decision.

BUY A PROPERTY

If you are inclined to buy the house, here are the advantages and disadvantages of this decision.

Advantages of buying a home:

You are buying something that will be part of your heritage and that will give you stability;
You are not paying rent to someone. You might be paying an EMI (Monthly Instalments of loan) to bank; however, this will be your investment and not expenses like rent.
It is something that you can use as collateral in cases of financing;
You can do the works and modifications of property as you want;
It has your fixed place to live which you can call your own.

Disadvantages of buying a home

You are bound to pay the property tax.

If you have a loan on your house, the house is yours only when all the instalments are completed.
You have to pay the EMI every month without default for a period of 15 to 20 years, which could be way more than your monthly rent.
if you cannot pay the instalments of loan amount, you may run out of the house or lose the money already invested.

RENT A PROPERTY

If you’re thinking about renting an apartment, here is all you should know before doing so.

Advantages of leasing a home

You do not have to pay EMI.
You do not have to pay big initial capital for a condominium.
If you can no longer pay the rent you can always switch to another property with cheaper rent.
In the event of unemployment, you can make use of income protection insurance.

Disadvantages of leasing home

You are paying for something that will never be truly yours;
Not free to make works or modification of property as per your liking.

WHICH IS THE BEST OPTION?

If you have capital, buy. If not, it is better to look for a house to rent. Buy or rent depends largely on every type of person and situation you are in. If you do not have much money or if you are looking for a temporary solution, renting is better. If you have a steady job, some capital and financial stability, buying a house could be your best bet.
In either situation it is always very important to think well, analyze the pros and cons and then make your decision.