Are you considering renting or buying a house? This decision can be overwhelming, but it’s important to understand the pros and cons of each option before making a decision.
Cost.
If you are looking to buy a home, it can be more expensive than renting. However, if you don’t plan on staying at your current address for long and if the cost of buying is reasonable in comparison with other options that may be available in your area (e.g., condos), then renting can be cheaper than buying.
Renting is also an option if purchasing a house is out of your price range or doesn’t fit within your financial situation as well as lifestyle preferences. Renting also allows people who don’t have much money but want stability and security in their lives so they can focus on other things such as work or school instead of worrying about paying rent every month while they’re away from home because they couldn’t afford buying yet another piece of property just yet!
Maintenance costs.
If you’re a renter, one of the benefits is that maintenance costs are lower. You don’t have to worry about landscaping, repairs and upgrades—these are things that landlords do themselves or use contractors for.
You also have more negotiating power when it comes to paying for repairs and utilities in your home because renters can negotiate directly with their landlords instead of going through a third party (like an insurance company). It’s important to remember that this isn’t always possible though—if there is something wrong with your apartment that needs fixing but isn’t covered by insurance or wasn’t caused by something outside its control (like weather), then you may not be able to negotiate with your landlord about how much they should pay for its repair or replacement cost before moving out (or into another rental property).
Financial flexibility.
Renting gives you the flexibility to move if you need to. If your job requires you to relocate every few years, renting will allow for more financial flexibility. You can save money by renting instead of buying, or use the money saved on rent payments toward other things such as investing in stocks or paying off debt.
Mortgage cost.
A mortgage payment is usually cheaper than rent.
- When you buy a home, your monthly mortgage payments are split into smaller amounts that can be spread out over a longer period of time. This means that you pay less each month in total than if you were renting an apartment or house.
- The government may also help with the cost of buying a house by allowing taxpayers to deduct up to a certain amount worth of new houses’ interest on their taxes—but only if they’re financing the purchase through FHA loans (which offer lower down payments and interest rates than traditional mortgages).
Privacy and space.
Buying a home may give you more privacy and space.
- You can customize your home to your needs. For example, if you’re a big family and want to add in another bathroom or kitchen, it’s easier to do this when buying than it is with renting.
- Add in things like a pool, sauna or gym (or all three!) and then make sure that there are enough rooms for everyone!
- You’ll also have access to all of those expensive furnishings that I mentioned earlier—like those custom-made chairs from Crate & Barrel…or maybe even those old wooden tables from someone’s grandparents who no longer use them anymore? There’s no limit here!
Financial investment.
If you buy a home and it increases in value, you can sell it for a profit. If you rent, however, your money stays in the same bank account.
In addition to this main benefit—that owning a home means that more of your money is invested in something that earns interest on itself—there are other reasons why owning a house makes sense for many people:
- You may be able to use the money from selling your current residence to move somewhere else or pay off debts faster than if you were paying rent every month.
- You’ll also have access to better schools and parks near where they live (if they don’t already).
If you are not planning on staying in the same place for a long time, renting can be the right choice. When you plan to stay put and have the ability to buy, then it’s often better to buy than to rent.
If you’re looking at buying a home for yourself or your family over the next few years, there are many considerations that go into making this decision. But if we were going through this process today (and if we were living in Nigeria), there is one factor that would almost certainly influence our final decision: how much value should I put on my property?
