Buy or Rent A House, Consider These Points For Your Decision

Buy or rent a house – We help you making your decision for your new home

Buy or rent a house? It is a common question and it is definitely not easy to answer without considering your situation since both options can be good. We recommend asking a few initial questions to better guide us:

  • In which area would you like to live and who will occupy the property?
  • What is your budget, how much can you allocate to pay?
  • Are you considering giving a down payment for purchasing real estate?
  • Can you get a credit? (go to this article to learn how to get mortgage loans )
  • How long will you live in that house?
  • Looking for flexibility or stability?

It is extremely important to be realistic and honest with yourself regarding personal finances in order to make an accurate decision without repercussions in the future. Renting is a viable and very common option for young people who are starting their profession or people who in their life stage have priority in other economic matters and do not have much capital to allocate it to buy a property.

Rent a house

You have to consider several steps to rent a house.

First, it is very common to have to give a rent deposit to the owner in addition to the monthly payment as a guarantee, since it protects the owner against damages caused by the tenant. This guarantee can have a value of up to two months of rent.

Sometimes (when they are apartments or houses in private subdivisions) the owner can charge a monthly amount to cover maintenance. This can vary, there are certain owners who do not include this fee in your rent and there are others who specify it. For the sake of simplicity, consider that you will always have to cover the additional amount if you choose to live in an apartment or house in private neighborhoods.

If what you are looking for is flexibility, a rental may be the most appropriate, because you can choose between properties that adjust to your requirements at the time and change with some ease when your contract expires.

A rental payment tends to be lower than the monthly payment of a mortgage loan, unless in your real estate purchase you give a high down payment. The difference is that if you are in a long-term period, it is advisable to buy even if the monthly payment is higher since you will end up owning a property and your money remains yours, adding the capital gain that your property will generate.

A small advantage renting is that you do not have to pay property tax every year.

You have enough capital to buy and you have the option to rent. Here it depends on you, do you plan to start a business or invest your money in another investment tool? If so, you can rent and direct your capital to the business, otherwise it is advisable to buy since your money is safe in the property and you can recover it by selling it with the increase in capital gains.

Buy a house

We have mentioned important information about mortgage loans and what to consider before looking for one in this article and the same applies to anyone with a job or business. The first thing you have to review is your budget and the value of the property you are looking for. It is important to be realistic with the price of the area you prefer, so you will have a very good idea of ​​the cost and avoid generating incongruous expectations.

If you do not have the cash (as in most cases), you have to consider having the money for the down payment of the real estate. The minimum we recommend is 20% of the value of the house or apartment.

Consider the expenses to make the purchase such as taxes, notarial expenses, among others.

Keep in mind the requirements to have an approved mortgage loan and the different institutions that offer them. This is done before bidding or contacting the owner who is selling the house.

Buying a property has its benefits:

You increase your wealth and economic assets

You are not subject to any contract for a limited time, therefore you have stability and certainty since it is your property.

Generate capital gains, you can in the future rent the property if that is your goal.

The real estate market is one of the most stable, buying land and a place to stay is one of the best ways to invest.

The monthly payment on a mortgage loan can be higher than a rent, but if you can give yourself the opportunity, it is better to pay for your own home and keep your money and increase it over time.


We hope these questions and points help you clarify your doubt if it is better to buy or rent a house for you and make your decision easier and more precise. We recommend approaching Brody Mader Luxury Residential & Commercial Real Estate certified real estate advisor to guide you step by step in your purchase or rent, it is totally free for the buyer since an advisor only charges a commission to the owner for the sale or rental of the property.