In the previous days of property world, buying a house was most likely cheaper and better than renting in the long run. However, as trend and lifestyles are shifting, will it still be the same?
The answer might be arguable, debatable, and varying from one region to another. However, what is certain is that, sooner or later, the trend might completely shift.
As the price and maintenance cost are getting more and more expensive, it will also degrade the value of house ownership. People will shift to renting, which proves to be cheaper, despite the following limitations.
In the US, for example, a new study hinted that the gap to buy and rent a house is almost dissolving. Even though the latest report indicated that lower mortgage rates help lower costs to buy houses, overall development in the recent years suggests the opposite.
Also, in Australia, some cities have indicated that renting costs lower than buying, considering the maintenance cost and taxes. In big cities like Sydney and Melbourne, renting is cheaper.
Also Read: Why You Should Not Buy a House, Eric Roberge Explains
In the Future, Renting Might Utterly be the Better Option than Buying
There are reasons why renting has a high possibility to be more preferable than buying a house at the end of the day. There are several long term considerations including the smallest future details about house ownership.
To begin with, we won’t start from price and mortgage rates as they fluctuate a lot over the years. However, think of the most practical way possible over contemplating whether to buy or rent.
Buying a house, or building a house from scratch, will cost much, especially during the preparation and future maintenance. For instance, several studies indicated that people, who just recently bought houses, did not expect that maintenance costs are ‘that’ expensive.
Furthermore, it is true that renting is full of limitations. However, the limitations do not always mean bad. For example, by having the reminder to pay the monthly fee, you will have more restriction upon being over consumptive. That, again, comes back to each individual.
Also Read: Investing in Apartment vs. House: Which is Better?
