Renting Vs Owning: Which One Is Best for You
Introduction
If you are thinking of buying a house, but you are not sure if it is the right time, or if you should rent instead, there are some things to consider. Owning a home can be a great investment and provide many benefits over renting. However, renting has its own advantages too. You need to weigh the pros and cons of each option before making your decision about which one is best for you:
Renting
- You want no financial liability. Renting is the best option for people who do not want to take on a mortgage, or those who don’t mind paying monthly rent but don’t want to be responsible for the maintenance and repair of the house (or apartment).
- Your lease will only last as long as your contract does. If you have a one-year contract with your landlord, then at the end of that year when it expires, so does your tenancy in that property.
Freedom
You can leave a rental at any time if the landlord will give you back your security deposit and any other money owed.
If you own a home, you’re stuck with it until you sell it. You’ll have to pay for the mortgage or rent out your house until then. If you buy something that turns out not to be right for everyone in your family, it’s hard to get rid of since there’s an emotional attachment to what they’ve grown up with (think of how many people on HGTV say they don’t want their kids growing up). This means that if something happens that makes one person unhappy, like having kids in different grades at different schools or moving into a neighbourhood where crime rates are high, everyone is stuck living there together until something changes—or until one person moves out on their own accord (and even then…it might not happen).
More Free Time
With renting, you’ll have more free time. No more worrying about what to do with the broken washer and dryer when they break down. No more spending hours cleaning your apartment. And if you hate mowing the lawn, you can just pay someone else to do it for you!
Owning
When you own a home, you get to make all the decisions about how to decorate and maintain it. If you decide to paint your living room orange, no one can stop you! You also have an option of renting out rooms in your house on Airbnb or through a property management company. This can earn extra income if done right and give people who need temporary housing options while they stay with family members during an emergency situation (like a fire).
Owning also means being able to save money by selling it at any point in time for the price that’s already determined by market conditions—which isn’t true for rentals. You’ll need a mortgage broker who has experience working with buyers who’ve never had their credit checked before; this goes for both renting situations where there are no background checks required whatsoever (unlikely) or when there are strict guidelines but little accountability once someone has moved into their new place (extremely likely).
Builds Wealth & Security
When you own a home, you build equity and can sell it later to make money. You can also rent out rooms to help pay the mortgage or even make improvements to the house that will increase its value. You’ll have more security than with renting because if you lose your job and need to move, owning a home gives you options like selling it or renting out rooms until another opportunity comes along.
Owning is also good for people who want the flexibility offered by being able to move around whenever they want—for example, if their work takes them elsewhere for a few years and then back again later on in life (or vice versa). This kind of freedom is possible when ownership isn’t required; it makes sense for those who enjoy change every now and then!
Builds Equity and Investment Value
When you own a house, you build equity. Equity is the difference between what you owe on your house and what it’s worth. The more you pay for your house, the more equity you build. This means that when it comes time to sell or refinance (or if something bad happens), there will be some money available to cover expenses—and that’s a good thing. If you need any assistance to sell or refinance, our team of mortgage brokers in Fremantle can assist you.
Renting doesn’t build any kind of equity; instead, landlords pay property taxes and insurance—and they get all the profit when they sell their rental home. Renters can borrow against their home equity through mortgages and lines of credit, but not all renters have access to these options because lenders require owners have good credit scores before approving them for loans.
Pride & Comfort of Home Ownership
While renting a home may be more convenient, there are many advantages associated with home ownership.
- Pride in Ownership: One of the biggest benefits of owning your own home is the sense of pride you will feel when you know that it’s yours. You’ll be able to make improvements and add on to your house as much as you want without having to worry about whether or not it will be approved by someone else, or whether or not they will approve of what it looks like. You can do whatever you want with your house because it belongs to you!
- Comfort Level: Another advantage of owning instead of renting is comfort level. When an owner has lived in their home long enough and has made all necessary repairs, they have a better idea about how loud noises could affect them (such as nearby construction). They also know where everything is located inside their home – this makes them feel more secure knowing where things are at all times since they know exactly where everything should be located at any given time during waking hours!
Weigh the pros and cons
Renting is a great option for anyone who doesn’t want to be tied down. With renting, you won’t have to worry about home maintenance or repairs. You can also move whenever you want, so if you like living in one city but your job takes you elsewhere, it’s easy enough to pack up and go with little notice.
Owning a home gives you more control over your living situation than renting does and allows for extra investment opportunities down the line. If you own a place outright, then there are no monthly payments at all—it’s just yours!
Conclusion
As you can see from the above, there are pros and cons to both options. Ultimately, it’s up to you which one is best for you. Weigh your options carefully before making any decisions about whether or not renting or owning is right for your lifestyle and future goals!