Should I Buy Or Rent?
30 March 2023
5 Mins Read
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To buy or to rent? This is a question that has perplexed many prospecting homeowners and tenants for years.
And, truth be told, there’s no straightforward answer to such a question.
In reality, your financial situation and the current market conditions can all play a part in influencing your ultimate answer.
On top of that, your own preference also matters. Some people like the predictability and low commitment of renting, while others vastly prefer to access the freedom of homeownership.
While we can’t give you a black-and-white answer, we can give you factors that can support your final decision.
Let’s look into the pros of renting a home, as well as the pros of buying one.
Pros Of Buying A Property
Here are some of the most notable advantages of buying a property.
Offers A Sense Of Stability
Once you’ve secured a property, you get to keep it for good, granted that you’re on top of your mortgages and monthly repayments.
Homeownership is the best and most realistic way to own a physical asset in your and your family’s name. Property is one of the largest investments people can make in their lifetime, so having one can increase your net worth quite significantly.
Moreover, buying a house or property can give you something to ride on in case the real estate economy starts to pick up in the upcoming years. Most importantly, having a house means you get peace of mind knowing that you and your family won’t be homeless, even if your financial situation dries up.
Builds equity
Whether you’re buying a house or a commercial lot, keeping it in your possession means that you get to ride whatever appreciation the property has achieved over the years.
And that’s always a huge boon, especially for properties in developed locations. Historically, real estate prices have been increasing, so owning a property can reap huge monetary rewards when the time comes to resell.
Furthermore, you can also access more equity by redrawing your loan or refinancing. This added flexibility can help pad against the large expenses of property ownership, which can lead to savings in the long run.
Want to know whether an offered mortgage deal is better than renting, based on your situation? Make a calculation based on your costs and situation.
Can Be Passed Down For Generations
Owning a property also means you get to pass it down to your children. Just like an heirloom, a house in your name stays in your family, unless it gets sold or foreclosed.
If you enjoy the idea of leaving behind a legacy for your sons and daughters, then owning a property can be a great way to do so.
Greater Control Of Your Space
Buying a house means you get to call the shots on how its interiors will get decorated.
Want to repaint the interior with a bold, new hue? No one’s stopping you! Want to renovate the kitchen and living room to accommodate more room? That’s also a possibility down the line.
If you intend to repurpose and refurbish your home, owning it in its entirety gives you unrestricted liberty to do so – which is something landlords won’t always guarantee.
Pros Of Renting A Property
Now that we’ve covered the pros of buying a home, let’s look into why renting a home or property may be more suitable.
Minimal Maintenance Fees
When buying a home, you’re often flooded with maintenance fees like plumbing, electrical work, and general repairs. This can be quite expensive, leading to thousands of dollars of costs over time.
However, when you’re renting a property, a lot of these problems are taken care of by your landlord. While you may end up paying for a few repairs out of pocket, it’s often not to the same extent as when you’re the owner of a property.
Plus, by renting, you’ll also always have your landlord or property manager to consult if you need to consult someone before getting fixing done.
Lower Upfront Cost
The most advantageous aspect of renting a property is the lack of a sizable downpayment. Owning a property requires you to not only pay the mortgage but also a downpayment. This figure often costs anywhere between 5% to 50% of the listed purchase price, depending on your lender and your credit score.
On the other hand, renting is much more accessible. The biggest amount of money you’ll pay is often just the deposit fee, which covers about three to six months of rent.
Flexibility To Relocate
If your lifestyle or job requires you to relocate every few months, owning an expensive home is just not feasible.
With renting, you have the freedom to relocate without a need to worry about selling off your property or preparing it for new buyers. You won’t be burdened by an expensive home sitting in dust hundreds of kilometers away from your present location.
Furthermore, by renting, you’ll just have to give your landlord notice and move to the new place. And while you’ll have to go through the hassle of moving your belongings, you’re pretty much good to go once that’s settled.
Final Decision: Rent Or Buy?
At the end of the day, we can’t convince you to pick one option without fully knowing your life situation. After all, buying and renting properties both have their pros and cons.
If you’re just starting to kick off your solo living journey and don’t have the means or funds to own a property, then renting a property is often the best option.
On the other hand, if you’re amidst a successful career, are starting a family, and have the funds in hand, buying a home is definitely worth considering.
In the end, it all boils down to what works best for your lifestyle and budget. Analyze the pros and cons of both options, review your finances, and decide once you’ve evaluated all angles thoroughly.
Good luck in your property-hunting journey!
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