There are pros and cons to both renting and buying a home. Before making a decision to either rent or buy, you should consider each option and its advantages and disadvantages. We have listed these below to assist you in making the temporary decision to rent or the permanent decision of buying a home.
Advantages of owning a home
Long term benefit of security and equity
Owning a home offers the long-term benefits of security, equity and potential growth in personal wealth. There is no fear of fluctuation in rent costs and there is the added value of earning a profit off the sale of the house, as the value would have appreciated, if you decide to sell.
Legal ownership
When you buy a house it becomes your legal property, which allows you greater freedom in its use without restrictions often enforced by a Landlord. Being a homeowner allows you creative control of your property. You can modify the property, i.e. renovations and landscaping, etc. to suit your needs and your style.
You have the option to let.
Buying a home as an investment is a sure way to generate other means of income. It provides the option of buying to rent out to potential tenants.
Disadvantages of buying a home
Financial dead end
Being a Homeowner comes with huge financial responsibility if you bought your home off on a loan. When renting, the cost of loan repayment as well as home maintenance falls on the homeowner rather than on a landlord. A Homeowner also runs the risk of not making any profit through resale of the house. This is often caused by economic factors such as a recession or high interest rates, or simply through a particular location becoming less desirable.
Less flexibility in regards to moving
A Homeowner has less flexibility when it comes to being able to move homes than a Tenant who rents on a short-term basis. A Tenant can leave a property after fulfilling the notice period, which is usually one month. However, a Homeowner is likely to be dependent on selling their home before being able to buy a new one, and therefore it might take longer to be able to move homes once the decision has been made to do so.
Advantages of renting a home
No long term commitment
Renting a property allows more flexibility than owning a home. This is ideal for those who could be faced with sudden changes such as a job relocation. Renting requires no long-term commitment from a tenant, and is the best option if you don’t intend on staying in one place for a long time. Moving out is easier for a tenant than a homeowner as there is no stress of finding someone to take over the lease, or finding a buyer to purchase the property as this is the responsibility of the homeowner or landlord.
Disadvantages of renting a home
No freedom to alter the house
A Tenant is bound by the rules of the lease agreement, which can impact the freedom to use or renovate the property. You cannot make changes to a rented property without the consent of the homeowner.
Uncertainty of rent costs
When renting a property, you will have no control over annual rental fluctuations which are directly affected by inflation. There is also no guarantee that a lease will be renewed when it expires.
At Devtraco Plus, we offer you the option to either rent or buy with payment plans that are tailor made just for you. View our properties HERE or, give us a call on 027 000 0004 and let’s find a home perfect for you.