Should You Rent or Buy a House?

Renting or buying a house both have their benefits and drawbacks. One may be more suitable for you than the other depending on your needs and situation. In order for you to make a sound decision, a lot of factors should be taken into consideration. Aside from comparing the monthly amortization to the monthly rent, you should also take into account other circumstances such as convenience, location, length of stay, lifestyle and maintenance cost.
rent or buy


Renting a house will initially cost lesser compared to buying a house with similar size and location. Renting only requires you to make a month or two months worth of rent for deposit while buying will require you to come up with a down payment at least twenty percent of the price of the house. Renting offers more flexibility when it is more practical for you to transfer to another location to be closer to your work. Renting allows you to transfer to a bigger home if ample space is required or a smaller home in order to reduce the monthly rental. Property tax,  home owners association, and Maintenance cost of the house are shouldered by the owner.

Buying a house will allow you to manage your payments properly since monthly amortizations rarely drastically increase. The monthly amortization will eventually become lower than the monthly rent in the long run. ere are the advantages of buying compared to renting a house. You won't be limited in what you can do with your house. You are free to renovate or introduce improvements to your own house. Unless there are major problems with the property or the real estate market, the value of the property will usually increase. After paying the amortization, you won'tneed to worry about paying for your monthly amortization anymore. Owning a house will allow you to liquidate the property or use it as a collateral in an event wherein you need cash for emergency.