House ownership is almost everyone’s dream. Having a home as a permanent residence is one of everyone’s needs. After working hard all day, everyone needs a comfortable place to unwind. If not, it can be privately owned homes for rent to everyone else. Therefore, either owning permanently or renting temporarily, a house is needed for living. However, which decision should you need between both? After all, it depends on the conditions which you should consider.
The Advantages and Disadvantages of Purchasing A House
Purchasing a house has its own advantages and disadvantages. To be sure, purchasing a house will require harder effort and better financial readiness.
- The property has the potential to offer long-term growth in the future. Simply, the value will eventually increase the amount of your wealth.
- Because the house value increases time to time continuously, the potential profit when you sell it in the future will increase as well.
- As the owner, all properties are legally yours. Thus, you have the freedom to do anything about the house.
- You also have the right to rent the house to someone else. This means that there is potential for rental income through the privately owned homes for rent.
- House is a property that must be cared for. There are costs that must be incurred while maintaining a house that the cost is not cheap.
- There is vulnerability to the risk of unexpected disasters, such as fires and landslides. To offset the risks, insurance cost is required on a regular basis.
- You are responsible to pay taxes for the house.
- Although a house value increases continuously, you may not get high profit when you sell it, if it is not at a strategic place that the buyer does not like it.
The Advantages and Disadvantages of Renting A House
Renting a house is the most affordable alternative to get a place for living. With a relatively long period of time and the same facilities, it almost feels as owning a private property.
- Renting a house for those of you who have mobile jobs is the best decision because you do not need a long-term commitment for it.
- By renting a house, you get an advantage when you cannot buy a house at a strategic place.
- As a renter, you are not burdened with maintenance of the property you live in. All types of maintenances are the houseowner’s responsibility, including the taxes.
- Renting a house has a lower cost than house repayments. So, you have more money to invest elsewhere.
- As a renter, you have to follow the rules of the rental agreement by the houseowner which will affect your freedom as the renter.
- You cannot change privately owned homes for rent without the owner’s consent. If you do so, you will have the risk not to be allowed to rent there any longer.
- Rent costs you pay will affect the inflation rate that occurs every year. This means that the rent you must pay can increase over time.
- Although a renter is not burdened with renovation cost, but sometimes, you will still be burdened with daily repair costs for minor damages.