Buy a house or rent? The advantages and disadvantages of buying
Buying a home is a serious decision that much more active responsibility entails. Unlike renting a house gives you as a buyer and owner have less flexibility. The owner is subject to a mortgage that he has to repay and he has to carry full responsibility for major maintenance and major repairs to the building. An advantage is that with a house to build a future and invest for the long term.
Buying or renting a house: a difficult choice
Who wants to leave the parental home and will stand on its own feet, is the choice for a home to rent or buy. Renting a home, the tough decision of a mortgage to go even a little longer, but also much more active drawbacks. Buying a home in contrast, the responsibilities of ownership with it, yet is a first step in the right direction if you want to build your future.
Benefits of buying your own home
Investing for the long term
By buying a house go all remember the long term. You go to your house to a mortgage to pay and when the mortgage is paid off soon, you’re officially the owner of your own home. By purchasing a home so you build your future while you not have thought that long if you only have one tenant.
While always up for a rental agreement of the owner if you need improvement or adjustment to make, now everything is totally your own decision. You can house all the way to your own taste and personal touches make. Everything you change your home is your investment with you in the long term benefits of wearing.
Mortgage cheaper than renting
If you are a tenant, you pay your rent every month just as it were in the past disappears. You do not build the future, although this is the case with a mortgage. With a mortgage, each monthly payment added up until the entire mortgage is completed. Each repayment can a true countdown to the final period, as a reward when you get full ownership.
Disadvantages of buying a house
When buying a home and entering into a mortgage is any responsibility on your shoulders. If a problem is the house that needs solving, you can not hide behind the landlord who only have to solve. No, now you have all the responsibility of your home. This applies not only for repairs and daily maintenance, but also for many boring administrative formalities such as registration of property and paying property taxes. Also insuring your home can take a big bite out of your finances.
Less flexibility as an owner
As owner, you have a responsibility to your house and you’re tied to your mortgage. You can not have the flexibility of the tenant. The tenant is actually just tied to his notice and severance pay, while you as the owner have to deal with your mortgage payment. If you want your house and you want to sell, then you may agree this with your bank, a mortgage on your house.
Costs and expenses uncertain
If a property owner can face unexpected costs if something’s wrong with the building. Costs and expenses are in their own home are not always clear at first, especially when it comes to your first home. For people without much experience can be very difficult to estimate those costs. What is true for almost everyone, because most people buy only once in their lifetime home. Therefore it is good from the start to put some money aside for unforeseen expenditure in the house.