Nowadays, there are many foreigners who are coming to live in Thailand but they don’t know whether purchasing a house or renting one is better, which makes them confused. Each one has both advantages and disadvantages. I would compare why purchasing your own house is better than which can help you make better decisions.
Both purchasing and renting your house requires money. Sometimes many people purchase their own house by installments. There are four reasons why purchasing a house with installment is better than renting.
- Mortgage are cheaper than rental cost
Mortgage prices are sometimes less than rental costs since you may borrow to buy the house at a low interest rate, which means that in the long term, you can refinance the house to make the installments cheaper. In contrast, the rental cost’s interest rate cannot be reduced, making it more expensive. As a result, if it is a long-term rental, owning a property by yourself may be less expensive than paying rent.
- It is your own property
Buying a house on your own means that you will have your own property that you can expand and modify to create the perfect home for you. But, renting a property is a waste of time and opportunity to have the home of your dream since you cannot renovate the house. If the tenant announces that the lease will be terminated, you must vacate the house.
- Use to deduct the tax
The tax can be deducted through home installment payments. Thai legislation specifies that persons who buy a property can lower their personal income tax by up to 100,000 baht each year, which is highly advantageous to you. However, you cannot deduct the tax if you rent your house.
- Gaining profit in the future
House is one of the properties that the price increases every year. When you buy a house, it becomes your property, which you may sell in the future. If the selling price is higher than the purchase price, it is called profit. Advantageously, if it is located in a good location, you can gain profit in the future. Meaning that if you rent in someone’s house, you don’t have the right to resell the home for any profit.
These are the top four reasons to compare the advantages and disadvantages between purchasing and renting a house which assist you to select in the suitable ways. However, if you plan to live in Thailand after retirement, I highly recommend you to purchase expat health insurance in Thailand, particularly Rabbit Care since it acts as a security tool to cover your life and the medical expenses when the accident occurs while living or traveling in Thailand. If you are sick and need to be admitted to the hospital, the room and board are also covered. There are many insurance partners available, leading you to compare the coverage and sum insured. If you are interested, you can contact Rabbit Care for more information.