Not everyone has the financial strength to buy a house. Investing in a house is a long-term commitment and unless you have a secured job and some good amount of savings, you won’t be able to afford to buy a house. But it doesn’t mean the end of the world. Renting a house is a good option and sometimes even people having the ability to buy a house prefer renting one instead. These are the reasons why renting house is a better choice than buying it.
Cheaper option than buying a home
Even if you get a mortgage, you will need to pay an upfront down payment. This is a huge amount and can be difficult to manage. Your savings will be stuck up in the house and you won’t be able to free up your money unless you sell the house. The monthly mortgage payments are also expensive. So, a major portion of your monthly expense will go into paying for your mortgage payments.
No maintenance hassles
If you buy a house, you will need to take care of all its maintenance requirements. It is a very crucial job and you may have to spend a lot of time maintaining your home. If your HVAC system breaks down or there is a leak in the pipe, you will have to fix it. Sometimes, the maintenance cost can be expensive.
You might lose your job or go through a personal crisis for which your financial condition may deteriorate. In such cases, you can shift to a smaller house if you rent a house without any difficulty. You might have to move to a new location for your new job as well. Once you are a homeowner, you will find it very difficult to sell your house on a short notice.
There is always the risk of decreasing property value. Buying a property is a big investment and you will put all your savings at risk. Instead, you can keep your savings in a bank and enjoy the interest. There is no risk of losing your capital.
Sometimes, it can be a better decision to rent a house than buying one. You should consider your financial condition and need before buying a property.