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Renting Versus Buying - Advantages of Renting a Home

25/10/2018

rent-buy

When it comes to real estate sector, we have to take several factors into consideration, be it renting or buying a home. You must have heard that every second person in Pakistan advises you to invest in real estate because it is the safest investment so far (due to cash-backed buyers). It is definitely a good option and all the experts suggest you to go with the flow, if your budget allows you and you think of staying at the same place for long time. What if you get a good employment opportunity in another city or simply want to move to another area?

These are definitely the factors that we do not consider while buying a home and park all our investment at one place. To help you make an educated decision whether it is the right time to purchase a property or you must stay in rental home, here are the benefits of renting a home.
  • The first and foremost important thing about renting is its flexibility due to which majority of people prefer renting a home over buying one. By just giving a meagre amount, you can live in a home, which you are not yet be able to afford buying.
  • Having the flexibility to move and not just be tied to one place are the main benefits of renting. Aside from financial constraint, if you are unsure about where you want to buy a home Ė renting is the most practical option. It allows you to spend time in different areas to experiment living there and to see which residential community will be most suitable for you to buy a place of your own.
  • Renting seems to be cheaper than buying a home but it may not be like that. You are paying for something for an asset that you are not creating equity in it. However, renting is one fixed cost for the term of your rental agreement. You may think that you can get a home mortgaged and pay the amount as instalment instead of paying monthly rent, remember there are several other costs associated with homeownership such as tax. Therefore, mortgage payment is not the only expense it should be compared to.
  • When you are living in a rental home, your landlord is responsible for repairs and maintenance. If you face any issue with any appliance provided by the landlord, you donít have to worry about fixing it.
Renting a home and not saving huge sum for home down payment, you can use the cash towards other financial goals and long-term investment. Renting is definitely far better than buying property.