To buy a house or to rent one? I'm sure that many millions of people who want to buy a home have thought about this question.
It's a big choice, and both sides have pros and cons. I would like to tell you some of my thoughts.
Why it's good to own a home
Many people want their own home, especially those who are thinking about starting a family. Because the house is yours and you can do whatever you want with it, you feel free and safe. You can change and decorate your house however you want.
A home can be a great investment, which is one of its benefits. Think of it as an investment in real estate where you also live. The government also offers tax breaks and deductions for people who own their own homes.
The best thing about owning a home instead of renting is that your monthly payments don't go to waste. When you own a home, your monthly mortgage payment goes toward paying off the house. When you rent a home, the money you pay each month goes straight to the owner.
When you own a home, your credit score goes up a lot, which means you can get better loans with lower interest rates.
The bad things about owning a home
There are some bad things about having your own home. For example, you are responsible if someone gets hurt or has an accident on your property. Getting a home insurance policy that covers these kinds of things can make up for this. But there is a price to be paid.
You are also responsible for any damage to your neighbor's property that you or your property causes. For example, a fire could start in your house and spread to your neighbours', causing damage to their homes. In this case, you are responsible for paying for the damage.
Wear and tear are inevitable when you own a home. For example, the water pipes might get rusty, the windows might need to be fixed, or the garage door might be broken. You need to spend some money now and then to keep your house in good shape.
Both your home loan and your home insurance need to be paid on time. Because of this, it can make it hard to meet your financial obligations. So make sure you have a good plan for making your home loan payments.
Even if you own a home and get tax breaks and deductions, you still have to pay property tax every year.
As you can see, buying a house is a big financial step. So be sure to plan ahead before getting one.
