Both renting a home and owning a home have their pros and cons. Therefore both are preferable by some people and not preferable by others. However, if we were to generalize, most people choose to buy a home rather than live in a rental home for the rest of their lives.
But, why buying is better than renting even though purchasing costs seem higher? Here is why;
Benefits of Owning a Home vs Renting
There are many advantages of buying a home vs renting both financially and psychologically. Here are the most important reasons that motivate people to buy a home instead of renting it;
1. Reducing Living Costs
When you ask “Is it cheaper to buy a house or rent an apartment or house?”, many people would say that buying costs more money. However, if you have a little bit of economical knowledge, you will know it only looks that way at the first glance. Buying a home is more advantageous than renting it in the long term.
Rental prices are almost always on an upward spiral due to population growth, seasonal immigration, and fluctuations in the inflation rates. So, what you pay for the same home is going to increase steadily over the years. Despite that, you’ll get nothing in return. However, it’s not the case when you buy a home.
If you buy a home with a convenient loan or purchase a home from construction companies that provide installment options for payments, you’re likely to pay less in the long run. Most banks offer fixed interest rates for home loans and construction companies usually offer flexible payment plans. So, your payments are going to stay the same while rental prices and salaries increase.
2. Creating Your Own Assets
Although both paying off a loan and paying rent to your landlord seems like a toll on the budget, they are not the same. While you get nothing in return financially when you pay rent, you become a homeowner as you pay off the loan. Since the demand for accommodation seems to never decrease in the near future, we can surely say that real estate investment is one of the timeless investment methods.
In addition, the prices of houses, apartments, and other types of dwellings seem to increase steadily. So it’s correct to say that your house or apartment will be worth more than you originally paid by the time you pay off your mortgage. Therefore buying a house or apartment is also a reliable investment method and provides financial security. So, owning your own home is worth the trouble as long as you avoid the pitfalls when buying a property.
3. No Hassles with the Landlord
If you have ever lived in a rental house or apartment before, then you must already know how hard it may be sometimes. Maybe you have even witnessed some hardships with landlords by now. Landlords usually look at rental houses as merely investment tools. So they try to cut on the costs to maintain a house most of the time and ignore the needs of the tenants.
You may have to endure unfavorable living conditions if you can’t get the landlord to fix them or search for another house to live in. And as you know, it’s not always easy to find another rental place that suits your needs. In addition, every relocation takes an extra toll on the budget. Therefore, it’s always better to buy a house than rent it to fulfill all your needs.
4. Freedom to Rent Out
When you own a house or an apartment, you’re free to do whatever you want with it (of course within the bounds of the law). So, you can earn some additional income by renting out that extra room or renting out the whole house only when you’re not using it through Airbnb. This will not only help you to pay off your mortgage but it can also help you to earn more for your luxury expenses.
5. Emotional Security
Emotional security is one of the biggest advantages of buying a house vs renting an apartment or house. When you are living in a rental house or apartment, there is actually no way of telling when will the landlord ask you to leave it. Sometimes landlords can demand their tenants move out on short notice.
Although the law sides with tenants in most cases, landlords may resort to psychological pressure on the tenants to get them to leave. These kinds of situations can leave you in a very tight spot since you’ll have to find another place that meets your needs in a short time. When you own a house or an apartment, you won’t ever have to worry about these kinds of scenarios.
6. Sense of Belonging
It’s only natural that people want to personalize and decorate their living spaces. But, it’s almost impossible to change the interiors of a house or apartment when you’re living in it with a rental contract. Most of the time, landlords do not allow such changes in it as it’s going to increase the cost to maintain the house.
However, when you buy a house or an apartment, you’re free to personalize and decorate it. You’ll be able to redesign your apartment or house according to your needs and preferences. This way, you can both increase its functionality and improve its appearance. This creates a sense of belonging and immediately enhances your emotional well-being.
Buying a house or an apartment also creates a sense of belonging in terms of community as well. When you buy a home, you’re likely to live in it for a long time. This may be seen as one of the disadvantages of owning a home for aspiring travelers. However, it’s a good sign of stability. Most communities are more welcoming towards homeowners than tenants.
Which Is Best Renting or Buying a House?
All in all, buying a house or an apartment is the best option for most people. When you buy a home, you’re able to create your own perfect living space and make an investment for your future at the same time.
If you’re also considering buying a home in Spain and making an investment for your future, you can contact our local experts without hesitation for available options. We’re only a phone call away!