Renting or owning a property depends on your means and needs. Here are the boons of each option to help you decide why rent or buy a property.
Renting a Property
Generally, renting a property will make you have lower living costs. If you feel that your current means of income is temporary or you cannot afford a large down payment upfront to buy a home, renting is the cheaper and easier option.
You are not required to pay property taxes. This falls under the responsibility of the landlord or property owner, since the law required the owner to pay for the taxes monthly, quarterly and annually diligently. When the owner of the property did not pay for the taxes, a possibility of the government to retakes the property and open for other interested parties to own legally.
You have no liability except for what is stated in your lease of contract. You don’t have to deal with technicalities that are your landlord’s responsibilities, such as utility problems, maintenance, or neighbourhood association dues.
Buying a Property
You won’t be limited in terms of design and commitment. When you are a renter, there’s little commitment with the space. When you rent you are limited to what you can and cannot do so you will sometimes have to resort to creative, though not always ideal ways to make your spaces work.
You’ll build equity since owning a property involves paying with a term limits till you owned it completely. If you are paying for an amortization, you are actually gaining equity and ownership with each monthly payment you make. It’s a good investment in the end because the rewards go in your discretion as the owner of the property.
Unlike rent which goes nowhere, buying a home turns out to be more cost-effective in the long run, because what you’re paying goes towards something you own. Also, owning a property adds to your list of assets and overall worth, which gives you better credit.