Is paying a mortgage better than renting?

Many people feel that owning a property is cheaper than renting. They see that some people are paying less on their mortgage than they do in their rent and they feel that having a mortgage is the right things to do. However, there are other things to consider.

Firstly, if you own a house, you have to pay to maintain it. If there is any damage to the building you have to pay to get it fixed, you also have to pay to decorate it. You also have to pay the buildings insurance on it. If you have a mortgage you will also have to pay life insurance that will pay off the mortgage if you die.

If you rent, you will not have to pay out any of these extra expenses. If there is a problem with your house, you will be able to get the landlord to sort them out. It may take a while to get it done, but you will not have to pay out any money for it.

rent-vs-buy

Owning a  house does mean that you have something for your money. Some people feel like rent is throwing money down the drain, when having a mortgage means that you have money tied up in a property. The thing with this is that you will always need somewhere to live and so you cannot get to this money easily. In fact it is likely that it will only be available when you die. This means that your dependants will benefit from it, which could be something that you think is good.

It is difficult to say whether renting or mortgaging is better. It can depend on your own personal circumstances. You will have to pay for a house about three times over if you have a mortgage and you will have to pay to maintain it over the years and added in with the cost of the insurance it can come to a great deal of money. With renting, you are probably paying a lot less over the years, but you will have nothing to leave to your children when you no longer need a house.

Some people just cannot afford the deposit on a house to be able to have a mortgage. Then renting is going to be the only option for them. However, there are people who can afford a mortgage but would rather rent. It is all a matter of opinion really and something that you need to think hard about with your future in mind as well as your present situation. Talking it over with friends, family and work colleagues can be really helpful.

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