When outweighing the pros and cons of buying or renting a home, there are things you might want to consider before deciding which one suits you best. There are advantages and disadvantages in both instances.
Buying a home
The pros
* You payment goes to owning your property
* You live by your rules
* You make a profit if the property value goes up
* You are free to make home improvements that could increase the property value
* You don’t live in fear of being asked to move for whatever reason
The cons
* Stamp duty and the deposit required by lenders could make buying costly
* Unless you get a fixed rate, you shoulder the increase on the interest rate
* You pay for the cost of repairs and improvements
* Your property gets repossessed if and when you fall behind your mortgage payments
* Moving can be difficult and would take longer because you have to sell your home first
If you are planning to stay longer or permanently in one place and looking for a good return of investment, then buying a home is your option. Depending on the location, a rise in property value could land you a big profit if you should decide to sell. Besides, owning your home offers you security through your retirement years.
Renting out
The pros
* The landlord shoulders the cost for renovations and repairs
* You don’t lose money when the property value goes down
* Moving out when the need arises is easier
* Rental fees usually stay constant
* Finding a home to rent is easier
The cons
* Your rent doesn’t buy you a house
* You can be asked to move out
* The landlord sets the rules
* The rent can go up
Renovations and improvements are restricted
If for whatever reason you are not certain of staying in one specific place, then a temporary accommodation best suits you. Renting offers you flexibility and mobility that would allow you to move at the end of your term. You don’t get to worry about home repairs, property value fluctuations, and the fear of losing your investment if you fail to pay your mortgage and the property gets repossessed.
Basically, thinking of whether to rent or to buy your own home would depend on your financial situation. If you are thinking of buying your own home, ask yourself, can your earnings cover the mortgage payments and still have enough to live on and allow you to spend on other expenses?
The length of your stay is another reason to consider. If you’re staying, then buying is worth considering. But if you want the freedom to move around and do not want to answer repairs and maintenance, then renting is your best option.
