Buy or Rent the Property– Which makes more sense for you?

What would be a better option – buying a new property or renting it? This is one question that often confuse the first time buyers even the existing one. Whether buying a new house or any property will ripe more profits then renting it?

Well there is no fixed answer for this as both the aspects have its own pros and cons. Let’s have a look whether buying any property will give you handsome bank balance or whether renting will ripe more profits.

Advantages of buying a property: 

1. First and foremost, when you buy a property you are the sole owner of it. Say if you buy a house that house will be you own. Everything good or bad with it you will be responsible for it.
2. There are so many tax concession that you get when you buy your own property that helps you in long term.
3. Do whatever you want to do with it. Well yes when you are an owner of a property you can do whatever you want to do with it. Paint it, redesign it, rent it, it entirely depends on you.
4. When you are an owner of a property then you will have something to pass on to your next generation.

Disadvantages of owning a property:

1. Buying a property give returns in long run. It is not like that you bought a new house today and the next day its price will go up. So waiting is the key here.
2. Once you buy a house or any property you have to stay there. You cannot move out if you do not like the new place or you are not finding it good.
3. If something breaks down then you have to pay for it. If things are not good then you have to retain them. In short the maintenance charges can create a hole in your pocket.

Advantages of renting a property:

1.      Firstly no monthly installments or payment of bank loans. This is the best advantage of renting a property. You have no tension for monthly bank payments.
2.      You can move out anytime if you do not like the new place or your surroundings.
3.      Renting a property has minimal financial risk as compared to buying it.
4.      Renting a property or a house gives you great chances of saving the money.
5.      You do not have to pay for the wear and tear of the property.

Disadvantages of renting a property:

1.      It will never be yours. A rented a property can never be yours and sometimes this can give you some pain, as each one of us want to own a dream house.
2.      Every time you move from one place to another the cost of this process creates a hole in your pocket.
3.      Your landlord can anytime ask you to move out of his property.