Personal Finance

Difference between renting and owning a house


Most of the individuals want to own a house because it is a place in which they are happily living with the family. For different reasons, many of them could not have an opportunity to buy a personal house. In this situation, some people are going to rent a house for some monthly cost. When you can’t own a house, renting is a very effective chance to live with the family members. In both the cases, the persons need to spend some amount every month.

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Monthly expense of owning a house:

When you own a house, it is better buying it with the full payment if you have more finance in your hand. Otherwise, you have to pay monthly mortgage for10 years or more according to the cost of your home. Owning a house with the loan is a large responsibility and it is a big commitment to every person. Paying mortgage, maintaining a house should be very important for the house owners.

You must have to spend expenses for insurance, house repairs, maintenance, and tax payments when you own a personal house. The house owners can live a luxurious lifestyle with all facilities in their own home. But these monthly payments are highly responsible expenses for all of them.

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Property taxes: The house owners can’t avoid the tax payment of their house property. Paying tax to your office or house properties will be good to secure your loan process. According to the value of your house, you should pay tax amount in a responsible manner.

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Insurance: Private house insurance is very important to protect your house from the various damages. Every house owner needs to pay insurance for getting full protection.

Maintenance: If you have a personal house, it is very important to keep preserving indoors, outdoors, painting, furniture, kitchen, ceiling, lawn, garden, bathrooms, and everything for the proper maintenance.

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Renting a house:

Renting a house is completely different from the owning a house. Own house is a property in which you spent a lot of amount. Renting a house or apartment is a property where you can live and pay some amount for living.

While a renting process of the house property or office property, it is not necessary to pay taxes and insurance amount. You can be free from these types of expenses. You can just pay monthly rent for living in a house or commercial property.

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At the same time, you cannot need to pay monthly mortgage for the loan amount while renting a home. This is because it is not your property but you just rent it for living with the family. Mortgage payment is not your responsibility because you don’t own a house but you just rent it.

Maintenance: Maintenance is not much larger in your rented house. Property maintenance is a responsibility of the house owner but you are just a tenant. If you are renting a house or office property, you can just maintain your furniture or other things not an entire property.