Real Estate

Rent Vs Mortgage

One of the biggest decision that many people who do not already have a home is faced with, is the decision of whether to rent a house or to buy one using mortgage. The difference between rent and mortgage is that rent is less varied and complicated, all that is required is that a contract is made between a home owner and a potential tenant, where they agree to pay a sum of some of money on a monthly basis, this money or may not include utility bills.

Mortgages on the other hand, is a loan used to build or buy a house, this type of loan is usually secured, after attaining the loan the home owner will be required to pay a monthly sum of money when repaying the loan. This monthly sum of money usually includes an interest rate. When deciding whether to rent or pay mortgages an individual often time ask which is cheaper, the rent may be seen as being cheaper at first but at the end of the day the house still belongs to someone else, when paying mortgage the the house belongs to the person at the end of the day. Sneak a peek at beach villas in Port Douglas

There are a number of benefits of paying mortgage and owning your home, first and foremost, it can be sold at a later date if one wishes to relocate, the price value of money usually changes, which can result in an individual getting more money for the house than what was actually spent. This gives them the chance to purchase a bigger and the more comfortable house, with benefits there are also downfall to paying mortgage, the interest rate for one may be too high so the potential homeowner have to ensure that they can indeed pay that monthly amount of money, because of this they have to ensure that they have a stable job.another drawback with mortgage is that when interest rate rise the monthly amount also increases, also there is little flexibility when paying mortgage.

Renting a house also have its benefits, first of all it allows flexibility this is good for person who travel regularly as a part of their job, another benefit is that the monthly payments is usually far cheaper than the monthly payments for mortgage, rents has no interest rate and no maintenance cost has to be taken into consideration, these maintenance costs are usually very expensivel lawns have to be mowed, leaky roof to be fixed and renovations have to be made, the downfall of renting a house is  that the money is dead money, no equity can be gained from it. Check out more about real estate agents in Port Douglas

The landlords sometimes can be aggressive and hard to deal with, this may result in a person not living comfortably, renting a home does not give you the right to make changes that suit your needs, as the house does not belong to you.Lastly, each time a person rents a house it cost a lot of money because of security deposit as well as the first month’s rent having to be paid up front rent. Other travel fees may be required to get to the required destination. In conclusion renting a house or paying mortgage depends on each individual and the situation they are faced with.