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Pros and Cons of renting vs. buying a home

Pros and Cons of renting vs. buying a home

Owning a home is like a dream come true for many. But the road to the fulfilment of this dream requires some efforts. This is so because buying a house or building one is one of the biggest financial challenges that one faces in his or her life. So, many people instead, prefer to rent houses in a suitable location. But living in a house of your own vs. renting a house, has its own share of advantages and disadvantages. Therefore it is very important to understand the pros and cons of both to decide which one is suitable for you.

Before you decide of buying a home of your own there comes an essential criterion to consider and that is whether your finances will support this and how your lifestyle going to change after this. If you are staying in a rented house, then you must well be acquainted with the advantages and disadvantages of the same.

To start with the topic, let’s first compare in details about the pros and cons of having a home of your own or staying in a rented property.

Comparison

Serial no. Factors Renting a property Owning a house
1 Privacy with your family members Restricted Yes
2 Building equity No Yes
3 Sense of security No Yes
4 Commitment Short-term Long-term
5 Ease of shifting Easy in the case of people with transferable jobs Quite difficult in terms of selling the old house and getting a new one in a new location
6 Duration of ownership 1-3 years at the maximum Lifelong
7 Cost of maintenance and repairs Undertaken by the landlord Have to be undertaken by you or any other family member
8 Tax benefits You receive no tax exemptions You will be able to seek tax benefits for mortgage or any property taxes that you pay.
9 Additional costs associated The cost of shifting incur every time when you change the house which is an  additional cost that you need to take care of There are no such associated costs of shifting

If you are interested to purchase your own home, then a home loan might be the easiest way to do so. You can do a small market research of the available home loan options to pick out the best one for yourself.