I’ve been reading and watching a lot of people talking about this topic. And most of them conclude that renting a house, in the long run, is much cheaper than buying one. Most people in my country, however, prefer to have their own house instead of renting.
After considering things that are more specific to my case, I’ve found out that buying a house is much better than renting. The reason why is what I am going to talk about in this post.
To start things off, let’s start with what I/we know about renting and owning a house.
Pros of Renting a House
Renting may be the only option for those of us who can’t afford to buy our own homes. But there are also reasons to rent even if you have the cash to purchase one.
It’s Cheaper
One of the obvious advantages of renting is that you don’t have to have a large amount of money to live in a house. Where I am currently staying, you can rent a small room at a rate of $15 (1,500 Php) a month, a 50-square meter apartment for $90 (4,500 Php) a month, or a whole small house at $200 (10,000 Php) a month.
Perfect for a Short-Term Stay
If you’re just staying for a few months or less in one place, then its more preferable to rent than buy the whole house. Unless, of course, you want a vacation house. :)
Easy Come, Easy Go
One thing I like about renting is it is much easier and faster than buying a house. Once you agree with the monthly rent then you can occupy it immediately. Of course you have to pay any required advanced payment. :)
And, as compared to buying a ready-made house, you don’t have to constantly think if you’ve bought the house at the right price.
Also, you are not bound to the house and you can leave whenever you like.
Maintenance Free
Another thing you don’t have to worry about is house repairs and maintenance. The owners of the house are obliged to the repairs and maintenance. You just have to inform them and wait for it.
Pros of Owning a House
Buying a house may be far more expensive than renting, but it also comes with attractive benefits.
No Monthly Rent, No Worries
Owning a house lifts the monthly worries of rent. You don’t have to worry about missing paying the rent which could lead to you being locked out of the house. Some landlords are lenient about rents but sometimes it can be disadvantageous if it will pile up and make you unable to pay.
You have more Control of the House
You can do whatever you like to your house without having the trouble of asking permission from the landlord. As you will be responsible for the repairs, modifications, and maintenance, you don’t have to wait for someone to take action.
Sell it or Rent it Out
If there comes a time when you get bored, you can sell or rent your house. As houses and lot properties appreciate over time you can sell the house at a high price than you initially bought it. Alternatively, you can also rent it out for a passive source of income – sweeeet. :)
Final Thoughts
The choice of either buying or renting a house depends on a lot of factors, such as our budget, our preference, the location of the house, and many other things. In some countries and certain situations, owning a house might be more expensive than renting in the long run.
For my case and personal preference, I would rather buy a house instead of renting one as I don’t like worrying about the monthly rent.
I also did the math; it is much more expensive to rent than buy a house where I live. Some landlords offer houses/apartments at a seemingly low price but will charge an additional huge amount on top of the utility bills.
Also, house repairs and maintenance take a very long time to be addressed by some landlords. Worse, some of them just neglect it.
Lastly, I also like the idea of renting out a house as a passive source of income. An example would be our neighbor renting a house at a rate of $200 (10,000 Php) for a house and lot that is around $20,000 (1,000,000 Php). Doing the math, the house (and lot) can be fully paid by the rent alone after 9 years.
The only thing that I am worrying about, currently, when buying a prebuilt house is if it is well made. Our country is situated within the ring of fire where occasional earthquakes are normal.
And, just a few months back, we are hit by a 7.0 magnitude earthquake and I’ve seen a newly built house crumble. And by the looks of it, it seems it’s because of a poorly built foundation.
That’s all for me now.
Thank you for taking the time to read my work. I appreciate it much.
Kindly drop your thoughts and feedback in the comments below.
Again, thank you, and have a great day ahead.
Disclaimer:
Nothing I've mentioned in here is financial advice.
Kindly diligently do your own research before getting into any form of investing.