Renting means paying someone for using a product. On the contrary, buying is to take ownership of a product in exchange for money. Understanding which one is better between rent and buy depends on many factors. Such as- duration of living, financial condition, etc.
In Bangladesh, people from the upper class to the middle class prefer to buy their dream home rather than rent as it's a sustainable idea.
However, leasing is flexible & efficient as it is easy to move and you don't have to pay a big amount at one time. But it simply depends on perspective. Both renting and buying have different advantages and disadvantages. Let's see between renting vs buying, which is better-
Buying a home means increasing equity & wealth. It's an investment for the future and it's a source of security as well for your family. Furthermore, property value usually increases over time. Therefore, it raises your net worth and eventually increases your savings. We must know, buying a property is never a bad investment decision.
Buying a home is a big expense indeed. But it creates an emotional connection when you own a place. You dream to live here for the rest of your life with your loved ones, hence it's special. Living as a tenant might not create this warm attachment with a place but for some people, it's not a big deal.
Scopes of Savings
In renting, the user pays a particular amount of money. There's no maintenance cost or repair bills. The House owner usually pays the maintenance bill and other hidden costs. In the case of owning, you sure have maintenance costs. But eventually, the cost reduces & you don't pay rent in this option as well. But as we know rents are usually reasonable which also inspires you to save more.
Legit Income Source
When you rent a house, you would have to pay a small advance initially and then pay monthly rental fees. It's quite an affordable option. But by owning a home you can not only avoid rental costs but also a source of income. It can be a source of impressive & safe income. You have the option to rent your place by choosing from various options as well.
Shifting & Movements
Some people think that it is difficult to move from one place to another if you choose to live as a tenant. But the idea is partially wrong. You may have to move but not so frequently. Sometimes even when people buy their home, they still prefer to live as a tenant. Some people simply buy a house as a financial decision and some people find it convenient to live in another place.
In Bangladesh, day by day the percentage of owning a house is increasing because of the increasing income of the middle class & also because of easy loans. But renting being an efficient option can also be the choice of many. Both have some pros and cons. At the end of the day, it depends on individual choice.