Buying vs Renting Home: Which is Better?

mistakes to avoid while buying a residential property

Pick out to rent or buy your home is a major decision which  affects  your lifestyle as well as your financial health. Real estate ownership is known as an investment that is similarly to build equity and a source of tax deductions. Renting also has its own advantages, including little to no responsibility and flexibility. Nevertheless, people often believe that buying a home, rather than renting, is the more financially sound decision. In the United States, most of the people lean toward ownership. This is all because we’ve been bombarded with the message that being a homeowner is the key to happiness and part of the American dream. Real estate is also big business for everyone in India, from mortgage lenders to real estate agents to home improvement stores. It is one of the part of our cultural mindset and economy. Still, it’s important to remember that owning a home isn’t always better than renting, and renting is not always as simple as it seems.  Before choosing any one of them consider the pros and cons of each to figure out whether renting or owning is best for you.

Renting

Renting states that you can move without penalty each time your lease ends. Still, it also means you could have to move suddenly if your landlord decides to sell the property or turn your apartment complex into condos. In short, they could just bump up the rent to more than you can afford. “Throwing away money” every month- is the biggest myth about renting everyone say. Which is not true. You need a good place to live, and that always costs money in one way or another.  It is also true that you aren’t building equity with monthly rent payments, not all of the costs of homeownership will go towards building equity. When you rent for house, you know exactly how much you’re going to spend on housing each month . When you own a house, you might pay nothing more than your mortgage and regular bills in one month or year. Then, the next month, you might need to spend an additional .While you might be temporarily inconvenienced with a leaking roof as a renter, it’s unlikely you’ll ever have to pay to replace your roof when you rent.

Buying

Homeownership brings intangible benefits, such as a sense of stability, belonging to a community as well as pride of ownership. Nevertheless, it is not good for restless or nomadic types. Real estate is one of  the original illiquid asset. You might not be able to sell when you want if the housing market is down in surrounding. Even if it’s up, there are remarkable transaction costs when you sell. Changing your mind about where you want to live is far more expensive when you own your property. The overall cost of homeownership lean to  be higher than the overall cost of renting. That is true even if the monthly mortgage payment is similar to (or lower than) the monthly rent you pay. Which option is best for you isn’t always  just about money. It is also about comfort and your vision for your lifestyle. Better to ignore the people who tell you that owning always makes more sense in the long run or that renting is throwing away money. While, disregard those who say that it makes more sense to buy if your monthly mortgage payment would be the same or less than your monthly rent payment. Housing markets and life circumstances are too different to make blanket statements like these.

We at Anshul Group are the top real estate agents in Pune are always happy to help you guide throughout your process of home buying and selling. Visit us at www.ansulroup.com for further information. Call us at 9561108080 to know more about us.