In some countries, most people prefer to rent their homes rather than buying them. What are the advantages and disadvantages of renting a home?

International students in Melbourne have started filling 2-bedroom apartments with six or more people because they don’t want a

house

for

such

a short stay.

This

trend is favourable for students since they don’t have to spend their savings on a long-term loan. While they pay their

rent

, though, they aren’t acquiring any assets. Renting (a) property has some advantages,

such

as avoiding paying for a mortgage and offering tenants more flexibility;

however

, it comes with some potential financial issues. On the one hand, taking a flat or

house

lease comes with multiple benefits.

Firstly

, tenants can avoid bank loans and only have to pay

rent

to a landlord either weekly or monthly whereas

house

owners tend to acquire a bank loan for long term payment.

For example

, In Colombia many people prefer to

rent

a place due to the fact that financial entities charge high interests on loans.

Secondly

, it is becoming increasingly the number of people in some countries who are moving abroad seeking better job opportunities, for

this

people

rent

a

house

is a better deal because can relocate to any places with ease.

For example

, an IT engineer who lives in an undeveloped country and wants to work overseas could easily live on

rent

while the job opportunity comes up.

On the other hand

, living on

rent

presents some drawbacks.

To begin

with, In many countries, renting a

house

or a flat could be extremely expensive, especially in downtown areas.

Therefore

,

although

there are places available in the zone, the prices are not affordable for all people.

For instance

, the

rent

price of a flat in big cities

such

as Melbourne and Toronto represents almost 50% of a middle class salary person. In the

second

place, a property is an asset,

thus

someone who buys an apartment is building their future,

in contrast

, people who are living on

rent

are spending money without get anything in return. To conclude, renting a property comes with some benefits, giving tenants an alternative to acquiring a

house

and a chance to relocate with ease.

However

, it

also

has some inconveniences related to their future finances.