Should you buy? Or should you rent? This debate will forever remain unanswered for one simple reason. There is no one way to do it. If you are still starting out your life then probably your budget is the factor driving you towards the decision but, is this the only factor you should consider?
Definitely not! There are number of factors to put into consideration.
Buying:
When it comes to buying, the argument is easily won:
- When you buy a house, it’s not a cost but rather an investment.
- The value of a house increases over time so your profit from reselling it is guaranteed.
- Owning a house provides you with the sense of stability as no homeowner will decide to get you out of the house whenever your contract ends.
- Home ownership gives you the freedom to decide on your home décor the way you like without worrying about approval from the homeowner.
- There is potential for rental income in case you decide to rent your house when you move to another place.
- Most of the Costs of buying are One-time costs.
Renting:
Unlike buying, renting has always been known as a waste of money but that is not always the case.
Ask yourself these questions before you decide to eliminate the renting option.
- Are you planning on moving from your house in a few years?
- Are you financially secure?
- How long do you need to commute to your work?
- Is your house situated near enough services?
If your lifestyle suggests that you need to move a lot then renting is always a better idea. Buying saves more money only if you need to settle down.
If you have the financial ability to commit to bank loans or property installments then you can buy a house, otherwise, renting allows you to downsize your payments by switching to a less costly place at any time.
If you live far away from your work or your children’s school, you will waste ongoing time and money on your commute. In this case, renting a house near your workplace is a smart decision.
Finally, if your house is isolated from services and facilities, the cost and hassle of reaching out to those facilities will cost more than the renting costs.
To settle the argument, either option can be used in your favor. You just need to know when to approach each one.
Manage your financial decision wisely through learning the costs and payment options of buying and renting presented in the next article.
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