Pros and Cons of Renting Vs Owning In The Current US Market

 

BUYING A HOUSE

A lot of thought and money goes into selecting and buying a house which is why it is often said to be a risky endeavor but is it worth the risk? I would say yes! Not only is buying a house risky, but it is also expensive. This is why it is always advised not to buy a house if you're not planning to be there for five to seven years to enable you to adapt to the transaction cost of buying and selling and to weather the ups and downs.

PROS OF BUYING A HOUSE

Asides from being an investment, buying a house is a basis for household stability. As a homeowner, you can control and personalize your space as you see fit, unlike rental spaces. Owning a house, especially a single-family detached home gives you the needed privacy from neighbors. Buying a house with a fixed-rate mortgage is profitable because with the current rate of increase in house prices, even with an increase in the value of your home, your monthly principal and interest payment remains the same throughout your loan.

CONS OF BUYING A HOUSE

Potential homeowners have shown concerns about owning a house with the current state of the US housing market. They are worried that buying a house could be a waste of money with the current inflation rate of home prices. The fierce competition home buyers face in the current US market is another major disadvantage in buying a house. Also, with NAR's anticipation that home appreciation will slow to 5% by the end of the year, there is no guarantee that there will be an increase in your home value as that in recent years.

PROS OF RENTING

Renting harbors has many advantages. Renting affords you minimal or no maintenance cost. It is cheaper to rent as no down payment is required when renting unlike when buying a house.

CONS OF RENTING

It is important to bear in mind that rental rates are not left behind in the increase of house prices but unlike the fixed interest payments you enjoy when you choose a fixed-rate mortgage loan to finance your property, rental rates are not predictable. 

Contributed By Annabel Joseph Jnr

Annabel Joseph Jnr is a professional writer who helps tell your story! You can't find her in many places online, but she may be doing some stuff HERE!