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Sankei Ole Kenga on Monday, November 12 2012, 05:22 PM

How does purchasing a home compare with renting one?

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Is it economicaly sensible to purchase a house as opposed to renting, that is given the different economic metrics/indicators
       
  • Replied by Esther Mungai on Tuesday, November 13 2012, 10:32 AM · Hide · #1
    Hi Sankei,
    The advantages and disadvantages of buying or renting a home is more dependent on the kind of life you live.
    Once a home is purchase, one frees themselves from the monthly/yearly debts of rent and a real saving is achieved. When paying rent, in actual effect, that payment is lost forever. You also lose the opportunity to build equity, take advantage of tax benefits, and protect yourself against rent increases.
    When repaying a mortgage, each repayment translates into very real savings in real terms. Other advantages of owning a home is that the value will almost certainly appreciate over the years on the re-sale of which will translate into a tidy profit. One may also refurbish, improve, and extend an owner-occupied home as and when one pleases.

    Advantages of renting are being generally free of most maintenance responsibilities. It is also suitable for people who have to move locations frequently away from their home areas. They can go about their business without looking over their shoulders to check what they might have left behind. Hope that will help ;)
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  • Replied by Wilson on Wednesday, November 14 2012, 01:16 PM · Hide · #2
    Hi,
    Renting a house can only be better if at least one of the following applies:

      The rent you are paying is lower than average and you expect it to stay that way for a long time.
      Your long term plan is not in line with remaining in that locale and moving in a few years is a big possibility.
      You are residing in a super-expensive housing market.
      You can get better-than-average returns from whatever you are investing your cash into.
      Lastly, the house you intend to buy is a would cost you alot to maintain than renting one.

    However, buying a house is always a better option (In my own opinion*) . :)
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  • Replied by Nancy Oduor on Wednesday, November 14 2012, 01:37 PM · Hide · #3
    Sankei, I think buying a house is always better. however, assessing your financial capability is best before taking any step to buy a house.
    A real estate agent can be of great help in this case. Check out this link, for Realcom Agents. I find them really helpful.

    References:

    1. http://bit.ly/T0QCcb
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    Replied by Kevin Kazungu on Tuesday, December 11 2012, 01:09 PM · Hide · #4
    It will depend your financial capabilities.
    That's the bottom line..;)
    1 vote by Esther Mungai
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