Usually people try to buy a house instead of renting one and they say it’s a lot less complicated if you do the same. But that’s not the same for every place in the world. Every city has its own housing prices and that means you can’t always buy a house wherever you move. Big cities like Chicago, Tokyo and London have very expensive rates when it comes to buy a house and it’s just easy to rent an apartment or flat in case you don’t have much cash.
Before going further it’s important to tell that renting is more preferable if:
- The rent is lower than your expectation and it’s easy to manage in your salary
- If you don’t have a permanent job or planning to move to another city
- You are living in a city that has very high real estate prices
- You want to invest your money and hoping to get more than average return
- There is no small house available and you can’t afford a bigger place
There are many websites that provide the facility of online buy vs. rent house comparison but most of them are very complicated and very hard to understand the results. So it’s better to do this comparison by yourself and that way you will be more concrete about your choice.
Here is preview of this Buy vs Rent House Comparison Template,
You can do this comparison by simply comparing both renting and buying features. Here are some advantages and disadvantages of both buying and renting a house and after reviewing the following:
Advantages of renting a house:
- you only pay a little amount of cash in form of rent that will be more compatible with your salary
- you don’t have to pay any property tax on the apartment or house you are living in
- you don’t have to pay any maintenance charges
- you don’t have to worry about the present or future real estate conditions
- you can invest the down payment you saved to buy a house
- there are greater possibilities of getting free utilities
Disadvantages of renting a house:
- rules and restrictions by the owner of the house
- you end up with nothing after leaving the house
- cost of living is unpredictable and depends on the owner
- even if you sign a lease, it will be still insecure
Advantages of buying a house:
- the first and the most important, it’s all yours
- by owning a house you invest in the best place
- your kids will have a permanent place to live in case of any incident in their lives
- you can get more loans from banks by owning a house
- in case you move to some other place, you can give the house on rent and it will be a permanent source of income
- there is no landlord that means no rules and regulations
- there is no need to worry about increasing the rent
Disadvantages of buying a house:
- you have to pay a big amount in form of down payment
- you will have to pay more in form of utility bills as compared to a rented house
- you have to have a personal insurance in case you want to buy a house and that means more cash is going out of your hand
- You have to pay for all the maintenance needed in the house.
By reviewing all the above information and knowing your circumstances, it’s very easy for you to decide what you want and what choice will be the best according to your situation.
Here is download link of this Buy vs Rent House Comparison Template,