Renting vs Buying a Property - The Barracuda Group
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Renting vs Buying a Property

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Renting vs Buying a Property

When it comes to making a choice between buying a house and renting one, it has always been one of the challenging and most difficult financial decisions to be taken by any prospective buyer or renter. Let us have a look at the pros and cons of both and make a decision.

What are the advantages of renting?

Before you conclude your decision of buying or renting a house, you should definitely consider the advantages of a rental property. The first thing that pops up is that it is easier to find in the market and can be negotiated with the price rate as well. Furthermore, the initial investment is no doubt lower than a property that is on sale. You don’t have to go through the complicated and complex loan and mortgage applications and you don’t have to be bothered about the property tax as well.

Disadvantages of renting

If you have decided to go for a rental property instead of buying one, you have to live in a property where you have no rights of ownership. You have to live in terms of the owner as long as it falls under the rental law. You don’t have the right to make any modifications and changes in the property as per your convenience. You have to pay a certain amount of money every month for staying in a house or an apartment owned by someone else. Don’t you think the same amount can be used for paying mortgages that you have taken for buying your very own property?

Benefits of owning your own house

There are several benefits to home ownership.

  • Once you are successful in paying off the mortgage, the property completely becomes yours and in years down the line, it becomes more than if you pay for it.
  • The value of your house increases over the time.
  • By the time you retire you might not have enough money to pay rent.
  • You will be surprised to know that sometimes it is often cheaper and budget-friendly to buy a house than to rent.

What are the cons of buying?

You have to understand that buying a house is a big financial commitment and you need to be pretty sure of the fact that you have the potential to afford it without hassles. It is important to how much it should increase. Can you afford the maintenance costs of your house? Apart from the mortgage payments, you have to make sure that you pay the property taxes and other expenses within the given time period. Also you may move in and find the previous owners didn’t take care of the property and you’ll end up hiring a company such as crystal clean Melbourne to restore that good as new feeling!

Make a checklist

Choosing whether you are willing to purchase a house or rent an apartment is a major decision as there will be an expense related to it for the coming many years. Analyse the benefits and cons of buying and renting.

Are you confused with the whole situation of buying vs renting a property? Before you take up any decision, it is essential to make a checklist of your own condition and thereby decide for the final conclusion.

  • Do you have a steady source of income that is required for renting as well as buying a property?
  • Do you have enough money to make the down payment while you buy a house?
  • Are you in a position to get your loan approved? If you, can you afford the mortgage repayment to be made within the stipulated period.

Depending on the above-mentioned checklists and the current market situation and your financial condition, you have to take the call whether you are good enough to buy yourself a house or wait and stay in a rented house. Get in touch with the Harlands estate agents in East London.

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