Renting vs. buying a house
Choosing to buy or rent, though, is a major decision that affects your financial health, lifestyle, and personal goals. Whichever option you choose depends entirely on your lifestyle and financial situation. Both require a regular income (so you can afford the payments and associated costs) and may also require a certain degree of effort to maintain. But there are several differences that make renting and owning property distinctly different.
Advantages to renting a home
- Being able to give notice to vacate gives you flexibility to move to a different type of property or to a different area.
- Moving out of a rented home can often be quicker than selling a property, which is useful in case a relationship breaks down. Renting can also be a handy way to test a new relationship.
- You don’t have to worry about maintenance costs, meaning you are not responsible for the likes of a broken boiler.
- If you rent a furnished place, the furniture, and white goods are thrown in too.
- Getting on the rental ladder is substantially easier, quicker and cheaper than buying a property.
- You don’t have to pay a mortgage or legal fees and stamp duty.
- You don’t have to worry about house price movements.
- You don’t have to pay property tax (OZB)
- May receive a rent allowance if your income is low
Disadvantages to renting a home
- You are paying rent to your landlord, unlike your monthly mortgage payment which goes towards owning your own home which means your wealth does not grow.
- Big upfront costs to pay when you move house, which can include a deposit and your first month’s rent.
- Your landlord might decide to increase your monthly rent when your lease is up for renewal.
- No control over organizing maintenance of your home so repairs can take longer than you would like.
- Could have to move if your landlord decides to sell the property, which means you suddenly have to uproot your life and find somewhere else to live.
- Renters sometimes find themselves battling with the landlord to get their full deposit back.
- You can’t redecorate without the approval of your landlord.
QuickHypotheek is ready for you at every stage of your life. Whether you’re going to buy your first home, live together, get divorced, or if you want to adjust your existing mortgage. QuickHypotheek makes every effort to find you a suitable mortgage including relevant insurances. QuickHypotheek keeps active contact with you for the entire duration of your mortgage. So that your mortgage changes with your life, your income, and your wishes.
Advantages of buying a home
- In the long run you will have the security of a home without the risk of a landlord booting you out.
- Mortgage interest is tax deductible.
- You can profit from rising house prices.
- you can decorate your home without asking permission from anyone..
- You have control over organizing repair works which might be done quicker than if you were renting..
- Interest rates on mortgages are still historically low, though they have increased in recent months..
- Once you have paid off your mortgage, you will own an entire home..
- While you should think of it as a home rather than an investment, if property prices increase then you will benefit when it comes to selling it..
disadvantages of buying a home
- At the end of your interest-rate period, a new interest rate will be established, and this could change your monthly payment
- You’re responsible for all repairs and maintenance
- Homeowners are subject to the housing market and price movements. If the value of your home drops below the mortgage you secured on it, you will be in negative equity.
- You’re required to pay property tax (OZB) and other communal taxes
- You’re required to pay for homeowner’s insurance.
- Sales may take some time
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