Should you buy or rent a house in 2022?
One of the biggest dilemmas for young professionals today is affordable housing. With many people juggling more than one job, it is no surprise that they want to buy a house.
Any decision involving real estate and housing can be life changing. Whether you buy or rent a house in 2022, you will have to make an informed decision by doing research. However, is buying a house in 2022 profitable at all? Or is it better to stick to renting a house?
Here’s all you need to know about buying vs renting a house in 2022.
Renting vs buying a house: overview
Renting a house is one of the most affordable housing options. It is popular because there is more flexibility to renting a house. For instance, you’re a young professional who needs to change jobs and cities often. Buying a house can be cumbersome for you because you need to keep moving.
Renting a house in 2022 has one major benefit: no property tax. You don’t have to worry about real estate taxes or down payments. Since you don’t own the house, there is no stress about decreasing property value either. The expense is fixed every month, and that can be a major advantage.
There are fewer responsibilities when it comes to renting a house. However, you might have to face uncertainty in terms of eviction and a hike in rents. Once you end up buying a house, there is no landlord looming over you with strict rules. A sense of independence and stability are the two biggest advantages of buying a house.
The uncertainty of eviction is gone, and you don’t have to worry about any sudden hikes in rent. Buying a house comes with easy financing options. Today you don’t need to wait until your 40s to buy your dream home. Moreover, owning a house means that you are building your own assets.
Additionally, owning a house also comes with income tax benefits on home loans.
Disruptions amid the pandemic
The Covid-19 pandemic proved to be an unforeseen incident. It continues to impact both the lives of people and the global economy. The economic slowdown has sweetened the deal for many prospective home buyers.
The real estate market is now more affordable than ever. The Indian government is also making significant amendments to boost the sale of properties. If you’re looking to buy a house, now would be the time. Instead of high inflationary prices, real estate value is more realistic now to attract investors.
The pandemic posed a threat to the financial stability of many people around the world. With the recession kicking in, several lost their jobs. The idea of ownership comes with intangible benefits like a sense of stability. It is why more people are looking for houses to buy in 2022.
Factors that can affect your decision
While not everyone can buy a house, it is still important to keep yourself informed about real estate prices. If you’re someone who can afford both renting and buying, here are some factors that can affect your decision:
- Flexibility or security: Ask yourself this question as it can affect your decision. If you’re looking for security, then buying a house might be your best option.
- Financial security: Financial security is one of the most important factors for housing options. You cannot think of buying a house if you have an unstable income.
- Prices and market value: One of the most important factors as it can change your mind. Being aware of the market fluctuations can affect your decision. Some people don’t buy homes as they don’t want to overpay in case of inflationary rates.
The bottom line: should you buy or rent a house in 2022?
Renting a house adds mobility to your life. If you’re someone who needs to skip town often or change jobs frequently, then consider renting as an option.
If you have a stable job and can fund at least 30% of your income, buying a house is feasible. 2022 has proved to be a great opportunity for home buyers, and you need to take advantage of this opportunity.
Whatever you choose, doing your own research is the most important thing in 2022. Without research, there is a chance that you might end up regretting your real estate investments.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.