New or rented house

India
February 7, 2010 7:44am CST
Hello people! I am living in a 1000 sq. feet rented house and I feel that it is better to live in a rented house rather than spending a lot of money in buying a new house. It is true that you have to face few problems in rented house, but I feel rented house is better than having an own house. What do you think is better? Own house or rented house?
1 person likes this
1 response
@owlwings (39110)
• Cambridge, England
7 Feb 10
There are a number of factors to be considered. If you are not expecting to stay in the same place for very long or if your cash situation doesn't allow you to make a deposit or qualify for a mortgage, then renting is either more economic or unavoidable. If you plan to stay in the same place for at least five years or longer and can afford to make the deposit on a house and can get (and expect to support) a mortgage, then there are usually some advantages to owning rather than renting, particularly if you buy a house that has a potential for improvement. Mortgage payments are usually significantly less than rental payments and, of course, you own the property and get to keep any profit you make when you sell it and pay off the mortgage. Don't forget to set against this, however, anything extra, such as upkeep of the property (usually included in rental payments) and local property taxes and buildings insurance (which are sometimes included, depending on the rental contract). If the house has scope for improvement and you have the time and are reasonably handy, you can often recoup what you spent on the improvements and make a sizeable profit (return) on your money.