The rent vs. buy debate is endless. Where some believe it is smarter to rent, others believe buying can work in your favor. But what are the points that each side considers in drawing their conclusion of which is better than the other? Here are few points that make a valid argument on both sides:
INVESTING IN YOUR HOME
1. Eliminating The Expenses
Pro-homebuyers state that the costs than an adult have to incur, such as down payment, is worth once the home has been paid-off after purchasing it. In other words, the dream of owning a home is fulfilled once you pay off your home which eliminates the expenses of the housing.
2. Earning A Return Or Breaking Even
Overtime, if the value of your home is appreciated more than the mortgage, house taxes, interest, and maintenance you have paid, then you will either earn a profit in return of your investment or at least break even with the total you spent.
3. Increase In Personal Wealth
In addition to making a profit with the value of your home being appreciated, you also have the chance to build equity (current market value of your home minus what you still owe on your home) which only adds to your personal wealth.
4. Perfect Conditions
The rule of thumb states that renting is cheaper than buying, however, it may not be so. With real estate markets going up and down, it may be to your advantage to purchase than to rent. Since the fluctuation percentage among rent prices rarely goes higher, purchasing a home with the right real estate market conditions would only lead you to more savings in the long-run than renting.
RENTING YOUR HOME
1. Eliminating Added Expenses
Pro-renters state that renting leads to more savings since one can eliminate added expenses of house tax, mortgage, interests and much more. Since one eliminates a range of expenses and no added costs are associated with their monthly/yearly expenses, their savings go higher to resolve other purposes.
Often it’s heard that renting is “throwing money away,” however renters urge the fact that renting is not throwing money away since you have a place to live and relocation is much easier.
3. Not The Dream It Used To Be
People who believe renting benefits both financially and in the long-run claim that the dream to purchase your home isn’t what it used to be. In other words, they state that owning your home comes with an array of responsibilities which over time can increase such as maintenance costs, paying interest and taxes.
4. Maintenance Costs
When you rent your home, major maintenance costs are the responsibility of the landlord. In spite of renting not covering smaller maintenance costs, which differs from one landlord to another, and the inability to personalize your living space, low maintenance costs lead to more savings.
However, many overlooked factors which determine which side weighs more include:
The cost of housing in your area. People rent, generally, due to the high price tags that come along with houses. If the cost of housing in your area is less than renting, perhaps it would be beneficial to be a homeowner and vice-versa.
One question you must consider is the duration you’d be living in the house you rent or purchase. If your work, or family, requires you to live in a house for a long period of time, perhaps renting wouldn’t be a feasible option. However, if house prices are out of your budget, an economical renting option might help.
3. Long-Term Return
If your goal is to reap benefits of a good investment through real estate, perhaps one other way is to compare investment made through real estate and other investment opportunities. For example, with an expanding family and the need to purchase a home the current real estate market may not allow you to purchase a home and the best option would be considering savings account which gives you higher interest returns. This way, you work for towards being a homeowner while you weigh your options for the right opportunity and timing.
Ultimately, conditions which allow you better to maximize your investment is worthy of your hard-earned money. Whether you rent a home or purchase a home, the option which suits your emotional and financial needs, and lowers or eliminates the risk of any instability is the right one for you.
With shifting trends in owning a home, people have increasingly started to opt for apartment housing which lets them eradicate expensive price tags of owning a home, lower their responsibility for recurring costs and increases the quality of their lifestyle with a myriad of features and amenities. Thus, putting an end to chasing dreams of owning a home to transforming those dreams into reality; with an enhanced perspective of giving luxury and comfort to their residents.
One such real estate project that is enhancing is the perception of luxury and comfort- Escon Arena. Thoughtfully planned residences with state-of-the-art features and amenities built around the needs of their residents are what make them pioneers of luxury and comfort. For your health goals, there is a gym, swimming pool, tennis court, meditation room, yoga room, pool tables and much more. To let you unwind the day there is 24X7 power backup and water supply so you don’t suffer in the heat or delays with making your home clean and tidy. There are tons of features and amenities which only boost your comfort and provide absolute luxury at your home at Escon Arena. To know more, contact us at www.esconarena.com