Would you rent or buy with a big deposit is the question that lingers in the minds of first time buyers. Shelter is the basic essential of an individual. Once you save a certain sum of money, the next big question you ask yourself is would you rent or buy with a big deposit. This is an important decision to make and needs lot of analysis before plunging into action. When to move to an own house is a tricky question as it solely depends upon the financial position of a person. Therefore, one cannot come to a conclusion based on advice from friends and family. The pros and cons of the situation should be researched before making the decision of your life, because one wrong step can leave you a pauper.

Would you rent or buy with a big deposit? First analyse the pros and cons of renting and buying before you come to a decision. Renting has its own advantages. The burden of mortgage is always hanging over your head in case of an own house, whereas in a rented accommodation, you are freed from this worry. Renting is cheaper when compared to paying a mortgage. There is lot of disposable income. Repairs, taxes and other expenses related to the house are paid by the landlord. Some of the disadvantages of renting are, the money that goes for rent does not come back and it does not contribute to building equity or assets. There is no security and you may have to vacate in case the landlord wants the property back for personal use or when he puts it up for a sale. Since you do not own the house there is no point adding your personalized touch to the space.

Merits of buying a house means you are building equity by means of compulsory savings for mortgage payments. By forcing you to pay mortgage you are owner of an asset in the long run. You can release the equity after a few years and convert to cash for your medical expenses or for buying another property. You can rent your house or even borrow against the property in case of emergency situation. The space belongs to you and you can enjoy refurbishing the house with the choicest décor. Mortgage repayments are temporary and once cleared, there is lot of surplus income to save. Some common demerits of buying are that major portion of your income goes towards the mortgage and a calculated lifestyle is prescribed. The interest rates fluctuate and you may have to pay more on short notice. On the whole if you have a decent deposit it is wise to buy a house as it is considered an investment. Buying a property is a long term commitment and you are building equity on it slowly. In spite of the sacrifices you and your family make, buying is the right decision. Though, renting saves money, you do not build any asset and the money remains stagnant. Therefore, if anyone asks you would you rent or buy with a big deposit, the answer should be buy.