Buying a home for yourself as well as your loved ones is possibly the biggest financial decision you may make in your life. Therefore, there are a lot of points to consider before you may make your choice.
· The Pros of buying your own home
1. Ownership of property
The fundamental difference between renting a home and buying one is that the amount you pay for mortgage payments will eventually serve to ensure that one day after all the payments have been completed you would be the ’whole and soul owner’ of your very own property. Moreover, you can also opt to refinance your house and be able to utilize the funds generated in this way for either renovating your home (or thereby further enhancing its value) or alternately any major expenditure that you may have in mind.
Since you live on your own property, you can pretty much do what you like with it and are not answerable to any landlord and would not have to worry about having your rents increased or being evicted from a place that you may have grown to think of as your own home.
· Disadvantages of owning your own property
3. You cannot shift easily
In case you have to move urgently to some other city or locality, you would have to sell your house. This may not be done simply and easily and you might need to wait until a real estate agent finds a prospective buyer or alternately you may decide to sell at a loss, quite unlike rented premises in which case you would simply relocate elsewhere.
4. All repairs are your own responsibility
Unlike rented accommodation, any repair or routine maintenance work is your own personal responsibility.
· Advantages of rented accommodation
5. Low Cost
It is a whole lot cheaper than buying your own place. Buying a house may mean you would end up being indebted for years, if not decades, while rented accommodation gives you the flexibility of changing your home as and when you want.
6. No need for DIY (Do it yourself projects)
Renting a house a allows you to let your landlord deal with such irksome problems as a ruptured mains or sewage pipes, rats, spiders and other assorted creepy crawlies that may infest the house.
7. Fluctuations in the real estate market
If the price of the property you are living in were to drop, it would not be of any consequences to you if you occupy it as a tenant. And moreover, as an added bonus it might lead to lower monthly rent payments.
· Disadvantages of rental accommodation
8. No opportunity to build equity
Every dollar you pay for rent is gone forever. In other words, you cannot build any equity. In case, you have to face adverse financial conditions, and are unable to pay your monthly rent, you might face eviction from your home.
9. Higher rents
Your landlord (property owner) has the authority to raise rents once your original agreement expires and as such, you would be forced to pay higher or seek alternative accommodation.