BUYING OR RENTING

Hello everyone, this is my first post regarding personal financial tips. Today, I am going to tell you whether you should buy a house or you should rent it. I hope it will help you in making a good decision.

The answer to the question of whether to buy or rent is not as straight forward as it appears to be. In order to make a wise decision all the aspects of both options should be compared. The first and most important aspect is 'cost'. In case of renting a house, the cost is much lower than buying a house. When you buy a house, you have to pay large sum of money in the form of mortgage, property taxes. The cost of buying furniture and other utilities adds to expense. On the other hand, renting a house is cheaper as these expenses gets cut off. Sometimes, maintenance expense occurs but it happens in both cases. Other factor which will influence your decision is 'saving'. Before making your decision ask yourself, do you want to save money? Most of the people want to save money. In this case, renting a house will be a better decision because when you buy a house, most of the money is taken by mortgage and other expenses. However, if you buy a property it increases your equity. Moreover, you can rent a part of your house and use it as a source of income. Another factor you should consider before making a final decision is the duration of your stay. If you want to stay for a long period of time, buying is a better option. However, if you are planning to shift in near future, renting should be your decision. If you are a high earner, you should buy a house instead of losing your money in form of rent.

Your decision should be taken after considering the factors like cost. saving, income, duration of stay. Ask yourself what suits you best? Do you want to stay for long term? Do you want to build equity for your children? How much do you want to save? If you are planning to buy make sure you earn enough to pay high expenses. If not, it can lead to bankruptcy. Make the best possible decision according to your need. I hope you like my views and I will be glad if it helps you in making right decision.