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Is Rental Property Better Than Buying A Property? Here’s What You Should Know


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Everyone at some point faces a dilemma of whether they should buy a house for themselves or stay as a tenant by paying monthly rent. Making this decision is not easy because either way, your life and lifestyle will change dramatically.

Conventionally, most people are led to believe that buying the home is the wiser and the better financial decision. This ideology is reinforced by the statement that owning a house is an excellent long-term investment and minimizes risk in the long run.

Furthermore, since the laws of a state are subject to change, it is best to buy a house as soon as possible. On the other hand, renting seems to be a more viable option due to the low investment. But it dramatically affects the amount of money you will have for personal expenses every month.

This article will go through all the things you should know and discuss the pros and cons of buying a home versus renting a home to help you make the best decision.

The Pros of Buying a House 

Owning a Home Ensures Security 

When you buy a house, you will ultimately own it without any risk or anxiety about relocating forcefully or worrying about your bank balance at the end of every month. This is applicable whether you have San Francisco luxury condos, San Diego or anywhere in America.

Make Changes, Renovate and Customize 

Owning a home gives you complete freedom to do whatever you want with it. You can renovate your house, make alterations, and do so much more to personalize your living space to your taste and personality without being answerable to anybody.

You do not have to take permission from anyone to make changes in your house, like painting a wall. Furthermore, your house’s value increases as you make changes that keep it fresh and new.

Tax Benefits 

There are certain tax benefits that homeowners can get. This varies from one state to another in the United States. For example, if you are a homeowner in San Francisco, you may be eligible for an exemption of up to $7,000 off the property’s assessed value.

This amounts to about $70,000 worth of tax savings annually. To know more, you can get in touch with any of the top SF real estate agents.

Getting Loans 

Although buying a home might take all the life savings you have got, it also comes in handy if you ever need quick cash. Banks readily agree to give loans to people who put their house as collateral because it ensures security.


Buying a house is a good investment if you have enough money saved up in case of an emergency and if you are sure that you will stay in the house for an extended period like 15 or 20 years.

This is because the value of your property would increase over the years, and you will also have a sense of belonging and an emotional attachment to your home.

The Cons of Buying a House 

Large Outlay 

You will have to deposit substantially large amounts in most cases when you are buying a home. This can cause a financial burden at the start, especially if your job is not secure or you do not have a backup plan.

Mortgage Interests 

Mortgage interest rates are typically very high. Additionally, if you choose to buy a house by taking a large loan, you might end up paying a more significant sum of money every month than if you had just rented it.

You can lower your monthly installment amount by opting for a longer loan repayment duration. However, in this case, you will end up paying a more substantial overall amount of money than if you had opted for a shorter period. Hence, it may be wiser if you choose a shorter duration and endure tolerable discomfort for a short while.

Hidden Expenses 

When you are a homeowner, all the additional costs associated with it, like maintenance and renovation are on your shoulders. Regular repairs, cleaning, and maintenance costs are some variables that buyers usually forget to factor in.

The Pros of Renting a House 


If you are working in a job where you are regularly required to travel or relocate, renting a house could be the wiser choice. It is also the right decision if you are confident that you would not be staying in one place for too long or are not sure of spending decades in a single location or community.

No Hidden or Unexpected Expenses 

You will not be liable for any unexpected expenses that arise from any damages that are not caused by you. Any maintenance cost like plumbing, painting, or renovating is taken care of by the house owner.

Smaller Financial Burden 

Contrary to buying a house, renting a home does not require you to out down large sums of money. You can conveniently choose a house or an apartment that best suits your budget anytime you are relocated without the hassle or second thoughts.

Freedom of Area 

If you rent a house, you have the freedom to move to any area of your choice. You can even walk to an area where property prices are high, but you would be paying a lower rent.

Renting Can Be Cheaper Than Paying Mortgage 

The cost of rent of a house is often lower than what you would pay as a mortgage when you choose to buy one. Additionally, you would also not incur any unforeseen expenses and maintenance costs.

The Cons of Renting a House  

No Customizability 

You cannot renovate or make changes to your rented house without the permission of the house owner. Any changes that the home undergoes are usually of the owner’s taste and not yours.

If you do have permission to make changes like putting on new paint, the cost would be incurred by you and not the owner. This price can also not be reimbursed when you leave the house.

Changes in Rent 

The rent for your house is not always constant. Typically, your house’s rent increases by a certain amount every year as per your agreement, and you will have no control whatsoever over it. If you cannot pay the increased amount, then you would have to relocate to another place.

Poor Security 

Renting a house means you have a roof over your head, but you cannot be sure when you might be required to relocate. Under such circumstances, it will become challenging for you to find a new place to live.


These are some pros and cons of buying and renting houses. Do your research to ascertain what is best for you and your financial situation. Either of the decisions will have a profound impact on your lifestyle and your financial situation.

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