Buying a home is definitely a good investment. Your money gets locked up and it may increase over time. However, there are also reasons why many people choose to rent a home instead of buying one.
1. Volatile environment
Though most property owners hope that the value of land will increase with time, the opposite might happen too. The land value may crash and you might not be able to sell your property when you need to. You might even incur a loss if you have to sell the property at that time.
2. Maintenance is a hassle
As a homeowner, you have a number of duties. One of these duties is to maintain the home regularly. This can be very expensive. If you rent a house, you won’t have to worry about all these.
3. No extra cost
As a homeowner, you will have to spend some extra money on insurance and taxes. This won’t be the case if you rent a house instead. You won’t even have to worry about mortgage payments.
4. No down payment required
You won’t have to save up money for paying the downpayment on the house. You can invest your money elsewhere and earn more profit.
So, before you think of investing all your savings on a property, you should study the trend of the property market. You should also consider your long-term goal before buying a house.