Points of Consideration Before Buying or Renting a House in Hawaii

The beautiful houses in Hawaii have always been a dream place to live in for many. That's why people seek real estate agent Hawaii to find a quality place to settle on this exotic island. However, one of the dilemmas that many individuals interested in a housing property face is becoming an owner or tenant of the property. Renting a place or purchasing a property in EMI have their ups and downs. 

Therefore, one has to thoroughly consider both of these factors before opting for either of them.

Renting vs Owning a House

The property debate for buy vs rent Hawaii is ongoing. But it is not so difficult to resolve if you assess the different factors associated with each of these options.

Pros of Renting a Place

Simplicity

Renting a place does not come with much trouble in Hawaii. The only decision making you might have to engage in is the condo vs apartment debate. For the rest, the process is relatively smooth. Locate a place in Hawaii with the help of a property agent and settle in with an agreement. The paperwork is pretty simple, and you will not have to exhaust yourself to get a place to settle in.

Affordability

One of the biggest perks of living on rent in Hawaii is that you can find a luxurious home for yourself at an affordable rate. You have to pay down payments, mortgages, taxation, and other expenses when you purchase a property. No such problem occurs if you are on rent. Besides, one does not have to pay for the house's renovation if they are on rent.

Mobility

When you purchase a property for good, it means you are tied to the place for the rest of your life. It might be the case that you do not feel like continuing living at your rented residence in Hawaii or found a better career opportunity elsewhere. In such scenarios, a rented house comes out as the best option. All you have to do is send a notice to your landlord, and you will be free to move anywhere you want. Rented properties are preferable for those whose work or lifestyle demands them to move from one place to another gradually.

Rent is Cheaper than EMI

Many people think that it is better to pay EMI for a property rather than ever going rent. While spending money at a place that turns it into an investment is always preferable, there is a catch about EMI. The rent for a given property is always much cheaper than its EMI. It is so because, in EMIs, many things are factored in, such as the bank's interest rate and other fees. Besides, even if the house's down payment is as much as 20%, the EMI for the remaining 80% will be quite substantial.

Hence, while paying EMI, you will lose out on a lump sum amount and will have to continue paying high monthly installments for a considerable period of time.

Pros of Buying a House

A Sense of Ownership

The best feeling about owning a house is that you know it is totally yours. No one is entitled to send you a notice to leave the premises. When you live on rent, you occupy the place, but the sense of being a tenant who might have to leave at the end of the term is not the ideal feeling. There are properties, especially in Hawaii, where we feel like continuing to live for the rest of our lives. But it becomes almost impossible for the rent to keep on increasing yearly, and the salary hike might not be able to compete with the inflation.

Similar Link: Selling Your House? Make Sure You Price It Right.

Monthly Investment

When you pay rent for a place, it just becomes a pure expense. At the end of the day, the property remains that of the landlord and you are left with no stakes in it. But on the other hand, when you pay EMI for the property, it acts as a monthly investment where your money eventually gives you total control over the said asset. In other words, you will have to pay EMI instead of rent for a certain number of years, but the end result will change your status as an owner of the property.    

Same Monthly Expense

If you buy a property at a fixed interest rate, you will not have to pay an increased amount in the upcoming years. The rate remains the same. But when you pay rent, the rate keeps on increasing every year. As a result, your property expenses keep rising and that too without you getting the ownership of the property.

It would help if you got the best rent vs buy calculator to analyze which option would serve you best in the long run. However, if you plan to live in Hawaii for a few years, then rent would be the best option. On the flip side, property ownership is ideal for a permanent settlement in Hawaii.