Whenever you are looking for a place where you can live, you are sometimes confronted with the basic question whether it is good to rent a home or instead buy and own a home. The answer to this dilemma is sometimes dependent on one’s perspective. What I am saying is that it is a case-by-case basis and depends upon your needs and situation. There are pros and cons in renting a home; likewise, there are advantages and disadvantages in buying a home, and it is the objective of this article to elaborate on the pros and cons of renting and buying a home.
1. First, when you rent a place to live in, you often have to pay a fixed rent. Hence, the cost is often fixed. However, if you are going to buy a real property via a mortgage loan, you will often find yourself shouldering variable monthly payments. Say, for instance, if you own a house, you got to pay for any repair that your home may incur. If the roof is leaking, you got to pay for its repair unlike if you are renting the house, your landlord will be the one to have the roof fixed.
2. Second, if you are going to rent a home, you are not required to improve the features of the home you are renting. This means you just have to accept the features it has without tampering on it. You need not repaint it or add another permanent feature on it. However, if you own a house, you are required to improve it and buy things that would make it look good. Likewise, you tend to spend for the flooring and for the fixing of whatever needs to be fixed.
3. Third, the price of renting a house or a room is less as compared to the monthly amortizations that you have to pay if you buy a home using a mortgage loan. Moreover, if you sum up all the payments that you would shell out for renting the place, you will immediately see that the total cost of renting is lesser than the total amount what you would spend for in paying for a new home. In fact, if you are the owner of a home, you still have to pay taxes which you will not do when you are renting a place.
4. Likewise, if you rent a place, you will only shoulder a very low down payment. Sometimes it only includes several advance payments of one or two months. On the other hand, if you buy a home, you will surely pay a significant down payment amounting to several thousand dollars or more. So, if you want to learn more about mortgage loans and down payments, you may visit http://Mortgagebrokerco.com.au for more information.
5. Lastly, there is not much commitments entailed in the lease process. Say, for instance, if the tenants move out of the house after completing the lease term, it would be very hard for landlords to sue them. The tenants are already off-the-hook from any legal responsibility to the landlord once they move out. On the other hand, buying a home entails a huge commitment. Once you agreed to buy a home using a mortgage loan, you are bound for several years of mortgage repayment.