Renting or buying a house both have their benefits and drawbacks. One may be more suitable for you than the other depending on your needs and situation. For you to make a sound decision, a lot of factors should be taken into consideration. Besides comparing the monthly amortization to the monthly rent, you should also consider other circumstances such as convenience, location, length of stay, lifestyle, and maintenance cost.
Renting a house will initially cost lesser compared to buying a home with a similar size and location. Renting requires you to make a month or two months' worth of rent for a deposit, while buying will require you to come up with a down payment of at least twenty percent of the house's price. Renting offers more flexibility when it is more practical to transfer to another location to be closer to your work. Renting allows you to move to a bigger home if ample space is required or a smaller home to reduce the monthly rental. Property tax, homeowners association, and Maintenance cost of the house are shouldered by the owner.
Buying a house will allow you to manage your payments properly since monthly amortizations rarely drastically increase. The monthly amortization will eventually become lower than the monthly rent in the long run. There are the advantages of buying compared to renting a house. You won't be limited in what you can do with your home. You are free to renovate or introduce improvements to your own house. Unless there are major problems with the property or the real estate market, the property's value will usually increase. After paying the amortization, you won't need to worry about paying for your monthly amortization anymore. Owning a house will allow you to liquidate the property or use it as collateral in an event wherein you need cash for an emergency.
