Buying or Renting a House; What is a Better Option for You?


When you plan to move into a new house there are two options available to you. You can either buy a new house or rent one. Both have some benefits and some disadvantages.

Credit score

If you are going to buy a house then most likely you are thinking of getting a home loan from the bank. Your credit score is very important while applying for a loan. If your credit score is low then your application may get rejected. You might even have to pay higher interest rates. If you are planning to take a home loan then first check your credit report. If your score is low then work on improving it and then apply for the loan.  

Existing debts

If you have already taken other loans, it might not be a good idea to take a home loan. This will burden you with you heavy EMIs every month. This might be a concern as you will have to repay other debts too. The bank may even reject your home loan application if you have already taken other loans. Buy a house only when you are financially secure. These problems do not exist if you choose to rent a house. 

Relocation

You may get relocated because of your job. If you buy a house and have to relocate, it will be an extra burden on you and your family. Moving out of a rented house is easy, but you cannot easily move out of a house you own as you will need to sell it.

Maintenance

Maintenance is a big issue when you buy a house. You need to spend extra for maintenance, furniture, appliance etc. Add those expenses to the price of the house while calculating how much you will need to spend. 

Monthly expenses

Buying a house is never a good idea if you have a shoe-string budget. The rent of a house is lower than the EMIs that you have to pay if you buy a house. Go for the option that best suites your budget.



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