Renting or Buying Property: Which is Actually Cheaper?Ink Well Mag July 26, 2016 0 COMMENTS
One of the biggest questions on the mind of first-time house hunters is whether it is cheaper to rent or to buy a property. Both have their pros and their cons, but it can be difficult to determine what will cost less in the long run.
Renting is usually seen as the cheaper option as it allows people to live in one property without having to actually own it. The idea is that the landlord will shoulder all the costs of owning the building while the person renting lives in and maintains the property.
Buying Property: Cheaper Option?
Despite the initial belief that renting is cheaper than buying a property, the truth is that it is actually cheaper to just purchase a property instead. It turns out that paying your mortgage monthly saves more money than paying for rent. Sites like Community Lending Group even allow lenders to find mortgages with lower rates, which makes it easier to pay off your debt.
Another advantage to buying a property is that you have full ownership of the home. It is a long-term investment, as having your own home is an asset. Mortgages may take a while to pay off, but it is not a life-long expense. Once you pay your debt completely, you will have a home all of your own. In Utah, many homeowners manage to pay off their mortgage as the state has one of the lowest home foreclosure rates in the country.
Why Do Most People Still Rent?
Although homeownership is definitely cheaper in the long run, the fact remains that most people still choose to rent. The reason behind this is quite simple: the down payment is simply too big for most buyers. The initial cost of purchasing a home is heavy on the wallet, and most people simply do not have enough saved up to overcome that first hurdle.
Considering that the majority of property buyers are young people in their twenties and thirties, they simply have less money to spare than their older, more established counterparts. The economic climate is improving, but for many, buying a home is still out of reach, despite lower expenses in the long run.