Buying and Renting – Which is better?

The ‘Rent vs Buy?’ question is more relevant today than ever before with property prices favoring a buyers’ market, however, uncertainty still remains among potential buyers around location hotspots, future return on investment, and short and long-term financial implications. In this article, I will be discussing the pros and cons of Renting and Buying.

For prospective owners who wish to stop paying rent, it does depend on where the individual sits financially, but if they have adequate equity, it makes sense for them to contemplate paying their own mortgage and look at real estate as a mid and long-term investment.

BUYING

Buying means to acquire possession, ownership, or rights to the use or services by payment, especially of money, buy land, purchase a building, etc. Talking about buying land or a home, Homeownership brings both tangible and intangible benefits. Not only do you have your own home, you can make decisions about the look and design of the space, but you also get a sense of stability and pride of ownership.

Buying- Pros

Opportunity To Build Equity

When you hear people talking about real estate and owning a home, one of the most popular words you’ll likely hear is equity.

 “What is equity”?

Equity in real estate is the probable market value of a home minus any liens against the property, such as a mortgage. One of the great advantages of homeownership is the opportunity to build equity.

Long-term investment: 

Whether you’re buying to live in the property to lease it, or even to sell it, you are paying your mortgage towards a longer-term asset

Opportunities:

Unlike renting, buying a property presents you with several opportunities which could generate plenty of revenue. Some homeowners now live off revenue generated by property leasing, offering them even more financial gain.

Owning A Home Provides Tax Advantages

There aren’t many people who enjoy paying taxes but it is a necessary evil. A great benefit of owning a home is the tax advantages that it provides. Buyers who have a strong understanding of important real estate tax tips quickly realize that owning a home provides some solid tax advantages.

Arguably the biggest tax advantage of owning a home is the option to deduct paid monthly interest from your tax returns.

Buying- Cons

Fluctuating market:

Like any market, fluctuations can cause some financial losses if the owner is leasing the property or if the value decreases.

Less mobility: 

If one of the advantages of home ownership is stability, that means it may take more thought to accept an attractive job offer requiring you to pick up and move to another city. The offset to this concern is the speed with which homes are selling.

RENTING

Rent means to regularly pay money to live in a house or room that belongs to someone else or to use something that belongs to someone else.

The biggest myth about renting is that you’re throwing away money every month. This is not true. After all, you need a place to live, and that always costs money in one way or another. While it’s true that you aren’t building equity with monthly rent payments, not all of the costs of homeownership always go toward building equity.

When you rent, you know exactly your housing costs each month. This amount is indicated on your lease so you can plan accordingly. In some cases, your landlord may also include other costs within that amount, such as utilities.

RENTING- Pros

Access to Amenities

Another financial benefit of renting is having access to amenities that would otherwise be an enormous expense. Luxuries such as an in-ground pool or a fitness center come standard at many midscale to upscale apartment complexes with no additional charge to tenants.

Lower Insurance Costs

While homeowners need to maintain a homeowner insurance policy, the equivalent for renters is a renter’s insurance policy. This kind of policy is much cheaper and covers nearly everything owned, including furniture, computers, and valuables.

Few Concerns About Decreasing Property Value

Property values go up and down. While this may affect homeowners in a big way, it affects renters substantially less, if at all. Your home value can impact the amount of property taxes you pay and the amount of your mortgage. In a rocky housing market, renters may not be as adversely affected as homeowners.

RENTING- Cons

More long-term expenses: 

Years of renting will build up significant outgoing costs with no tangible asset to show for at the end. By considering your longer-term plans and monthly rental payments, you can assess how much you will end up spending and make an informed decision that will best suit your financial needs. Since the recent decline of property processes seen across the region, many are now taking the opportunity to benefit from lower house prices rather than continuing to pay rent.

Get all the information you need to make an informed and intelligent decision and we can walk you through the very easy process of owning land now. We have landed properties, Epe and Ibeju Lekki: Edge Palace, Edge Place, Edge Court, etc.

Investing in the real estate sector is interesting and rewarding. You can start small and grow your investments with time. You can buy land for personal building purposes or as an investment.

Thank you for your time, please feel free to chat with us or find out the list of available properties (i.e., residential or commercial) we have on a flexible payment plan and with a considerable discount on an outright payment plan.

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