The decision of whether to buy or rent a house depends on several key economic and social factors. Here are some common fundamentals to be considered in reaching your housing solution decision:
Current Financial situation / Affordability.
Buying a house involves a payment of large amount upfront or to arrange a loan facility with long term repayment plan. In addition to the purchase price or down payment buyer has to meet costs such as brokerage fees, legal fees, stamp duty, other transaction costs, planning clearance /documentation charges, insurance, taxes, and spend cost and time for renovations depending on the condition.
Renting, on the other hand, requires a security deposit/key money in addition to the initial rent payment as agreed, legal charges and agents fee etc. The repair and maintenance, rates & taxes, insurance liabilities during the tenancy would be as agreed by the parties. Hence, first, you must consider your budget, income and savings when deciding which option is more feasible and comfortable for you.
Way of living / Lifestyle.
Renting a house provides more flexibility in terms of location and living arrangement, allowing you to move easily to a new city or particular neighborhood or switch to a bigger or smaller apartment or house based on your preference.
If you are supposed to move frequently or at regular intervals, owning a house in a specific location will not be benefited in terms of self-occupation is concerned. Because buying a house requires a long-term commitment and limits your flexibility. However, buying would be a better decision if you are preferred to settle in a particular location for a long time.
Market Condition.
In addition to above, your decision should be reflected by the prevailing market conditions particularly likely impact on rental market and capital market.
In a situation where market values are appreciating, decision to own a house would be beneficial due to potential capital value appreciation. However, if the property market is more volatile or uncertain, renting would be an ideal decision until the market becomes stable. Do not worry about your lack knowledge and market awareness, there are experience real estate professionals and experts who can advise you in real estate decisions.
Future expectations/goals.
In summary, buying a house may be a better option if you prefer to live in a particular location for long term as it generally increases the capital value in the long run as an investment. However, if you do not prefer to restrict to a specific location for a long time and require moving different locations then renting may be a better option.
Ultimately the choice between renting or buying a house depends on the individual preferences, affordability, expectations and the market situations. As it is a life time investment with significant capital exposure, it is prudent to consult a real estate professional who has the necessary skills and experience to make it economically viable with guaranteed return on investment.