Some people prefer to rent accommodations while others buy their own home. Does renting a house or apartment have more advantages than buying one?

There has always been a debate whether buying a house makes more sense than renting. Some of them believe that owning an Apartment is advantageous as it is a form of an appreciating asset. While others believe that in

this

modern age where most of us are Economic Nomads and owning a property restricts us to a specific place. I will discuss the advantages and disadvantages of

this

in the below passage. On one side, The advantage of owning a property is that it gives a sense of financial safety because most of them think that in case of a financial crisis they at least have a place to stay.

However

, the disadvantage of owning a home is that it becomes a long-term commitment especially when a loan is taken against it.

For example

, I live in Munich and the Real-Estate Prices are at a premium currently. Without taking a loan from a bank it is impossible to buy a property. The downside to

this

is that the Monthly instalment span a period of 20 years.

This

duration is very long and individuals can go into bankruptcy.

Hence

they can end up auctioning the asset back to the Bank. On the other side, The advantage of renting makes an individual more flexible in terms of exploring new career opportunities. Another advantage of renting a place is that one need not always burn their pockets to pay the rent.

For Instance

, In ,Germany the Government sometimes steps in to control the rental price.

Therefore

its Citizens are protected from being overcharged by greedy landlords. Renting

also

gives people the flexibility to move out of a location if they feel that the community they live in is no longer safe for them. To conclude, even though have

an

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interest to buy an apartment renting one saves them from having long-term liabilities in the form of monthly instalments.