Sometimes it is better to rent property instead of buying it and some sometimes it becomes vice versa under special circumstances. Here are some pros and cons in both situations.
Table of contents
The mystery of renting or buying a property always revolves around the circumstances you are going to face in the future. For example, you are living in a situation of having a job nature that you have to change city frequently, then you need a property for rent.
On the other hand, if you choose to live permanently in some locality, buying a house or property would be a better option.
There is nothing good or bad in property play. To understand this notion, we have to understand the basic notion behind it. As per the rule of thumb, you should not buy a property if your period of stay in a place is less than 5 years.
Similarly, property for rent for a long time will drain a lot of money from your pocket. So, the simple rule to understand this situation is the given circumstances.
Everything you hold in possession ultimately becomes your asset in a long run. Similarly, some disadvantages also persist in property holding. You need to pay the taxes and keep the property maintained.
Moreover, if you plan to move to another city, the asset will turn into a liability. On the contrary, these hurdles do no persist in the state when you are renting a property.
As we discussed above, there are several pros and cons of renting vs buying a property. If you own a property, on one hand, you do not need to pay the rent or living. On the other hand, you have to pay property taxes frequently.
Similarly, the cost of the property fluctuates and the tax rate may be increased too high as per government policies. Moreover, if you rent a property, you have to bear the cost monthly along with the rise in rent according to the contract.
You have to bear the maintenance cost and responsibility when you buy a property that is not for the person lining on rent.
If you are living for a short period in place renting a property is always been a good option for you. The landlord has to bear the maintenance and up-gradation bills.
He is responsible for the repairs and other domestic chores that pertain to the building whatsoever. Similarly, he has to bear renovation and other costs as well.
It depends on the terms and conditions that you have settled with the lender. If there are some predefined rules in the contract, you need to tell the lender before you rent the property to someone.
On the other hand, if there is no as such rule is made already like contract the situation may get opposite.