Buy or rent a house

For the vast majority of people having a home is part of a dream to achieve, as it provides many benefits such as security to the family, added value in the long run, except that you do not have to deal with increases in rental prices. But while it is true that owning a home has its advantages, in some cases is not always the best option.

It is common to hear real estate agents, mortgage brokers and banks say that buying a home is the best investment you can make in life, but more than an investment is a place to live, and in many cases there it is better to rent.

When renting a property there is a widespread misconception that money is wasted because you’ll never recover. If you own you can recover what you’ve spent and to capitalize goodwill gains when you sell the property. But little is taken into account other costs associated with ownership of a separate house mortgage payments, such as maintenance, insurance, taxes, and repairs, which eventually can be very expensive.

It is for this reason that before buying a property you should certainly consider the benefits of renting as they are

• No need entry fee. Suppose the entry fee to buy a home is 20% of its value; collect that amount may take several years, while for rent in most cases only need an amount to cover the guarantee or insurance, and one or two months rent. It is considerably less than an entrance fee for the purchase amount.

• Mobility and flexibility. If you do not really know where you want to set, either neighborhood, city or country, renting a house gives you a lot of flexibility. If you are young or just starting your career you can afford to take advantage of the opportunities that exist in other cities without having to worry about having to sell a property, especially if your career allows you to settle elsewhere.

Also if the neighborhood deteriorates, the homeowner gets very demanding or your new neighbors make too much noise, it will be easier to pack your belongings and move out.

• Lower debt. As you do not need a mortgage to rent a home, your debt level will be considerably less. But not only that, if for some reason you can not comply with the payment of the rent on time, this is not always reported to the credit bureaus.

And if you have no other debt such as student loan, or credit card, you’ll enjoy being a debt free person.

• Secure lower. The insurance rent is lower than the insurance that pays for home ownership, and you just have to ensure your belongings and premiums averaging $ 12 a month, much cheaper than securing the entire house fire, flood, etc.

• Basic services. Many times the cost of basic services such as water, electricity, gas, already included in the monthly rent and can prove to be very economical. In some cases it may also include cable and if you live in an apartment complex might even include gym, pool or sauna.

The decision to buy or rent a home will depend on your financial situation, your preferences, and aspirations.

Rent makes sense if you are not able to buy a house or need a greater degree of flexibility. For many people the rent is synonymous with freedom, because there is no attachment to any property at any time can move to another city or country where there are better opportunities.

And another thing … When you rent are not required to make repairs, as this is responsible only to the homeowner.