Why You Should Rent Instead of Buying a Home

There are times when it is better for people to rent than buy a house.

Things to Consider when Purchasing a Home

1.  Job Security - You should make sure that your job is stable if you are going to avail of loans. If you suddenly lose your job in the middle of your amortization period you will lose your house to foreclosure and your previous payments will be for naught.

 You should also make sure that the monthly payment would not strain your current budget too much.

But if you are going to buy the house for a one time fee by means of your savings, these would not be a problem.

2. Relocation -  You should not buy a house if you are expecting to relocate soon. Selling a house when you are moving takes time and cost money in terms of hiring a real estate agent and fixing it so that it would be fit for sale.

Advantages of Owning a House

There are a lot of advantages when you are living in your own house.

1. Cheaper than renting

When you don't own your place you have to worry about paying rent every single month or else you will find yourself living in the street.

And sometimes it is really hard to get ahead when the money you could have spent for yourself goes to your landlord.

Also every year you have to factor in inflation and expect the rent to increase by 4%.

If you own your house you don't have to worry with these things.

2. Free to make improvements

There are times when you feel that your apartment could use some renovation. Perhaps you feel you need to expand a certain part of the house to accommodate your growing family.

Maybe you want to replace your roofing material because it easily leeks despite of numerous repairs.

But you realize that you shouldn't really do this because in the first place you don't really own the house.

And, if you do make improvements, it won't really benefit you .

When you leave, the landlord can then charge a better rent because of the improvements that you made.

This is one of the disadvantages when you don't own your house.

3. No dealing with unpleasant landlords

Again it is really hard to live in a house that you don't own. If something in the house needs to be fix you have to ask first the landlord. And if your landlord is stingy, you will have to live with that leaky faucet or you will have shoulder the cost of fixing it.

4. You can give your house to your children

If you own your house, you are free to include it in your will and give it later to your children.

Buying a House

Everyday we spend our money on different things like a new book, a headphone, an ipod, a Big Mac, kitchen appliances, and a lot of other things.

There are a lot of times that we are happy with what we buy but there are times when what we bought falls short of our expectations.

But that is okay since these things are trivial purchases anyway.

But when you are buying a house, you should not approach it in the same carefree manner. Because a single mistake with this kind of investment can lead to financial and emotional disaster.

Things You Should Consider Before Buying a House

1. Financial Readiness

2. Timing

3. Advantages of Owning your House

4. Advantages and Disadvantages of Renting a House

In my future posts I will explain these criteria in more detail.