Confused Between The Options Of Renting Versus Buying A Home?
Follow along to understand some of the pros and cons of each option to make the decision that’s best for you! Find out the suitable option for renting versus buying a home.
Rent |
Buy |
|
Down Payment |
Small initial payment with refundable deposit. Sometimes might not get deposit back at the end of the lease. |
10% of the flat cost. |
Amount Variability |
Rent can be increased at the end of a lease. You have the option to move if rent is increased. |
Monthly payments stay the same throughout the loan. Home value can go down but payments are fixed. But most often, values used to increase only. |
Customization |
Renters are typically not Home-owners can allow doing any major renovation. Ultimately you would just be improving someone else’s property. |
Homeowners can improve, renovate and remodel to increase value and make it according to their own choice. |
Maintenance |
Renters typically are not responsible for maintenance. They have to notify the landlord when something is broken. Sometimes renters have to wait a long time before something gets taken care of. |
Home-owners have to cover the cost of any repairs or replacements.
They can do it whenever they want.
|
Stability |
A landlord can decide or short notice to stop renting to a tenant. Renters are at the mercy of the landlord. Renters have the convenience of not needing to sell a home before moving. |
Home-owner now they have a place they own.
If a home-owner needs to move, it can be hard to sell a home quickly. |
Getting Or loosing |
Every time you pay your rent you get to live on someone else’s property for another month. End of the day, you will have nothing in your hand when the agreement ends. |
Every time you make a mortgage payment, you own a little bit more of your home and are building your own equity as opposed to your landlord’s. At the end of EMI completion, you will be owning a property. |
Many people are often intimidated when it comes to buying a home. The reality is it can often be less expensive on a monthly basis and will end up building long term equity. Most homeowners agree that their investment in their home is one of the best investments they’ve made!
