Should you rent a house? The pros and cons

Published: Thursday, August 18, 2011, 11:08 [IST]

Option 2: Renting a Home. Is this a better option? What do you gain and what are the disadvantages of renting?

Pros
Ø Affordability
Renting a home could work out to be a much simpler and convenient option for many. With rents being lower than EMIs, if the difference amount is wisely invested regularly you could earn favorable returns in the long run.

Ø Flexibility
In times of a financial crisis or if you are moving to a new city, rental homes offer flexibility. You could opt for a rental home on the basis of your affordability and when your economic condition improves, you could always move on to a better home.

Ø Commuting and City Limits
Commuting to work, especially if your office is in the heart of the city, could be quite harrowing. If you are the kinds who do not like to travel long distances to work each day, renting a home within city limits, is a good option.

Disadvantages
Ø Lack of Security
There is no guarantee of how long you could stay. If your landlord decides to cancel your agreement, you would be left with no option but to vacate. Such frequent changing of homes could be quite a nightmare and a chaotic affair for you and your family.

Ø Lack of Freedom
Modifications, alterations or setting up your rented home the way you desire, may irk many landlords. There is seldom freedom to have it the way you want it, and sometimes impossible too.

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