Pros and cons of buying and renting - Is It Better to Rent or to Buy?

Here are 12 reasons why you should own rather than rent a property:

1. Emotional satisfaction

Home ownership is wrapped up in so many layers of emotion. Owning a home makes people feel secure and provides a sense of independence, pride and fulfillment.

2. Financial Stability

Unlike rent, which tends to increase every year, your mortgage payment will remain the same for most of the life of your loan (assuming you have a fixed-rate mortgage).

3. Emotional Stability

When you live in apartments, you’ll always feel sort of shiftless and in limbo. Unlike when you own your own home, you start to feel a bit more rooted.

4. Build equity

Unlike with rent, you actually have a chance of seeing your money again when you make your monthly mortgage payments. The reason for that is with every payment, you’re building equity in your home.  A general rule is that if you intend to stay in your property for at least five to seven years, the costs of purchasing the home are more likely to be offset by accrued equity and increased housing value.

5. Greater privacy

Unlike with rent, you don’t ever have to worry about the owners checking up on you since you are the owner.

6. More savings

As you stay in a home longer, the savings benefits far exceed that of renting.

7. More space and layout options

Most apartments run in the 1-2 bedroom range, and are laid out in a very economical way. That’s fine for when you’re single or a couple, but once you have kids, it’s amazing how a place that once seemed decently roomy now feels like a confining hole. A house (and the backyard that typically accompanies it) gives the kids room to roam and parents space to breathe.

8. Control over your property

If you want to paint the walls bright green or turn your garage into a small gym, go right ahead, that’s your prerogative. You own the place.

9. Great investment

Owning a home is one of the best investments you can make because it’s a great potential in your personal wealth as it benefits your security and equity.

10. Appreciation

Although real estate moves in cycles, it has consistently appreciated. Appreciation is the largest measurable financial benefit to homeownership.

11. Gain a sense of community

Homeowners often are more involved in the well-being of their communities; they work together for better schools and less crime. There are also many neighborhood groups that you can become involved in, and if you have children it may be of benefit for schools and friends.

12. Credit Score Booster

If you availed of a home loan, it will be a good way to improve your credit score if you’re a good repayer.