When it comes to a large investment so many of us are confused. We think of it as a worthwhile investment or some of us may think rental arrangements are better. Potential homebuyers are fearful of the property taxes and rates that come along with it. Here are a few pros and cons of renting a property:
Renting any property might give you flexibility. Choose based on your personal choices, with little rent, afford posh locality, a extra bedroom if you need, anything, this can be a bit too much when buying property. With rental plans, all your savings will not be tied to a single investment. If you were to use your savings for education, travel, or even buying a anew car, you will distribute your money than risk spending it all in one place.
On the other hand, a steady increase in inflation will lead to higher rents, you might feel it as a burden, every month your money going away in chunks. They might ask you to vacate anytime, even if you are completely settled in your rented house, love your locality and neiughbors, and they giove you short period to vacate. Finding another house in this small period, with the same benefits might be tedious.
While buying a property, gives you stability. Living in your own house as per your own needs is a luxury. You have the freedom to live as per your wish. You get to renovate your house, and a new shade of paint, change the décor, or even break down something that you don’t like. Property prices only hike over time and gives you good returns. Also, you can rent your property for some cash flow creating a way to pay EMI and a passive income sideways.
Cons of buying property include the expense of the property for a long time. The benefitsd may kick in a bit late. The potential high rates of interest may make you think twice before investing. All your life savings will be stuck in a place, which might create financial barriers. It is advisable to invest if you are planning to reside in the place for a long time.