Renting vs. Buying a Home: Which is Better If You Have Low Income?
Everyone knows the importance of having a place to stay where you’re comfortable and safe. But, if you’re a low-income worker, would it be better to rent or to buy a new property in Kentucky?
The debate is still ongoing when it comes to renting or buying a house. Each has its set of pros and cons, and you need to consider that when making a big decision.
While the choice is yours in the end, let’s look at the differences between buying and renting a property, especially the advantages and disadvantages they pose.
Renting a Property
You can rent an apartment or an entire house. Most of the time, the cost of the rent will also depend on the location of the property.
Renting allows you to have more freedom. It is still challenging, but compared to buying another property, renting a new apartment in a new place is a lot easier to do.
Another advantage is that its renting is low-maintenance. The property owner takes care of any damages to the property, which means you don’t have to pay for it from your wallet, but do read the terms before signing any contract.
Perhaps the most significant advantage is that renting is still cheaper than paying a mortgage. You can save a few hundred dollars to even thousands per year when renting.
While renting is suitable for “mobility,” it’s not exactly the best for long-term staying.
The property owner could choose to sell it in the future. You have no say with what they’re going to do regardless of how long you’ve been a tenant.
Additionally, you can’t expect to remodel or renovate the property you’re renting. Most of the time, the tenants are not allowed to make any changes. If you’re allowed, remember that the changes you make will only benefit the landowner in the future when you move or when they sell the property.
Buying a Property
The most significant advantage of owning a home is stability. You don’t have to fear losing a home because someone will sell it. It’s the perfect choice for those who want to settle down and have a family.
Owning a property is also an excellent investment. Instead of renting, you can rent it out and gain extra income. In the future, you can even sell it if you wish.
Most of all, you can do whatever you want. You have the freedom to renovate and remodel your home without any silly contract saying you can’t.
A mortgage can be expensive. It’s usually more costly than renting nowadays. But, you can find rates that fit your income–you just have to look harder.
If you can find a lower mortgage rate, the better. However, it doesn’t mean you’re safe from spending. Since you’re the property owner, you are responsible for every damage your house gets.
Owning a property is high-maintenance and isn’t the cheapest option.
Renting and buying a home can affect people quite differently. For some, renting is the best option, while others see ownership as the right choice. Consider your lifestyle, income, and needs, and decide from there.