Rent vs. Buy is considered to be a tricky concept. While mulling over this idea it is best to bring to light the positive and negative aspects of the deal. Never go for bias recommendation, always opt for thorough investigation before choosing one of the two. Relocation is a primary aspect when considering rent vs. buy. In case you are permanent resident the best option would be to buy and settle. For a person who is on the move regularly renting would be considering the best alternative. There is no point investing in a house you are not going to live in. Rent vs. buy analysis needs some calculations to be made. Cost of owning a property should be calculated before deciding on a buy. Some of the costs include taxes, mortgage payment. Insurance, renovations (if any), utilities and maintenance cost. Calculate the monthly cost you need to set aside while owning a house. Include all the above said factors and arrive at an average cost. The next step in rent vs. buy would be to calculate the cost for a rented accommodation. Add rent and the rental insurance together. Compare both the monthly cost of buying a house and the monthly cost of renting a house. If the buy figures are huge then the best option would be to rent an accommodation.
Rent vs. buy which saves money? Mortgage payments only cover the principal and not the interest. In any case equity would have been made in spite of zero rise in value. Suppose you are planning to sell a house, calculate the sale expenses, minus the equity. Also keep in mind in rent vs. buy, that rents will rise regularly, whereas, a mortgage payment usually decrease over time. Though, all this falls back on how long you are going to live in a particular place. Rent vs. buy which has more responsibilities? A major factor to consider while renting a house is the responsibility. Buying a house definitely is more lucrative when compared to rent. It gives you an opportunity to stay financially ahead. In spite of the advantages many people do not like the responsibilities that come with it. Responsibilities are not easy, you have to take care of painting, roofing, and carpets, maintain lawns, pesticides, garage, driveway and the list goes on. If you are serious to take up all these and more duties then think of owning a house else drop it.
Amidst all this it is a great idea to buy a house taking into consideration the growing rentals and fixed mortgage rates. It is an asset building operation. But in rent vs buy
, renting costs less and the renters can save money for other purposes. There are situations where renting also can be advantageous, all this depends on the attitude and other associated factors. Ultimately, rent vs. buy situation has to be handled according to the living conditions of an individual; no amount of research can judge their state of affairs.