Buying a house is everyone’s dream. However, people’s choice to buy or rent a house is a major decision based on many factors, such as lifestyle or individual goals. An individual’s choice requires a regular income since maintaining a rented or owned house involves certain maintenance. There are several advantages of owning a house rather than buying, such as it saves money; however, there are also disadvantages, such as it requires an upfront investment.
To begin with, buying a house rather than renting is a good long-term investment. According to Wilson and Barton, even though houses lose value, the land where the house sits is valuable. Buying a house enables an individual to invest in an asset for themselves rather than a landlord. A house is a physical asset that most people tend to rely on more than they do stocks, bonds, or mutual funds, which can be sold with little notice and at great risk to their value. Therefore, owning a house is advantageous because it makes an individual’s life comfortable.
On the other hand, one of the disadvantages of buying a house versus renting is its high upfront costs. It could be very hard for one person or a family to buy an entire house alone. For example, buying a specific house is about $1 million, which is way too expensive for an average family to buy alone (Wilson and Barton). Another disadvantage of buying a house is that a significant commitment is not just to the bank but also the buyer.
In this case, the buyers will be required to pay a large amount as a down payment to purchase a house. However, unlike renting houses, buyers of houses are expected to invest their money to maintain and repair the property (Wilson and Barton). Thus, a house is considered an investment, and real estate agents will tell an individual it is a good investment strategy despite all of its difficulties.
Renting is more reasonable than buying a home because a person does not have to consider paying off their mortgage and other expenses required when moving into a home. It is because rent payments may be lower, especially if an individual rents an apartment. Buying a house can make an individual stretch too thin financially. The rental market has grown rapidly over the past years as more and more people are willing to rent rather than buy (Cherry and Nick 940). It has made it easier for people to rent a house or an apartment in the U.S. than to buy a home.
However, the disadvantage of renting a house is that rent may increase. Some people find it challenging to pay rent if they do not have stable jobs. For instance, if a group of people says that they are buying a house, they have to borrow some money from somebody else and then repay it after some years, but till then, they have to pay interest. But in the case of renting, there is no interest, and renting is very easy and affordable.
In conclusion, the advantage of buying a house verse renting is that it saves money, while the disadvantage is that it tends to be either a risky or not so risky because of the private investment involved. Renting a house is always an option and is very practical in certain situations. Therefore, people need to analyze different scenarios and make the best decision based on their current and future goals.
Works Cited
Cherry, Catherine E., and Nick F. Pidgeon. “Is sharing the solution? Exploring public acceptability of the sharing economy.” Journal of cleaner production vol. 195, 2018, pp. 939-948.
Wilson, Wendy, and Barton Cassie. What is affordable housing? London: House of Commons Library, 2019.