Renting vs. Buying a Home: Which is better?


In most cases, it's better to buy a home than to rent, but not in all cases.

Making the decision whether to buy or rent a property is not always so obvious when you weigh up the main pros and cons. So here we have listed the main areas of comparison to think about before you make that all important decision.

BUYING:

PROS (ADVANTAGES)

- Pride and comfort in owning your own home - Ability to customize the home exactly how you want. -Property gets more valuable over time -The monthly payments can decrease over time. - You stop making payments when the loan is paid off - When (if) you sell your home, you don't have to pay any income tax on the gain

CONS (DISADVANTAGES)

-Buying costs -Interest to pay on your mortgage -Property taxes -Property Insurance -Maintenance - Risk in losing your home and investment if you can no longer pay the loan repayments.

RENTING

PROS (ADVANTAGES)

- Simple - Easier to move if you decide to relocate - No cost or effort spent on maintenance

CONS (DISADVANTAGES)

-The monthly payments likely to increase over time -Restrictions on making your home exactly how you want. -No long term security that you can stay. -No chance of any equity when you move on.