Thursday, June 12, 2014
As the economy goes through good and bad times, rent or buy is no longer an easy question to answer. If you have the money and are thinking of moving out and up, here are things to consider before deciding on whether to rent or buy property.
Lower initial cost
You only have to pay the first month of rent and one or two months deposit.
Renters are bound by their contract but they’re free to look elsewhere for a property once their contract's up.
If you're not ready to buy yet, renting helps establish a good credit standing that makes you look good for loans.
Not your home
It's your landlord's home. If you plan to redecorate or have pets, you need his permission.
Speaking of the landlord, it's his call on whether or not to raise the monthly rent.
Buying a home
High initial deposit
If you don't ask the right questions or read the contract properly, you'll find that you're paying for more than you bargained for.
It's an investment
For the high price you pay, it will be yours. You can do with it as you please, from decorating to renovating, renting it out and reselling it.
Even after paying for the apartment, once it's yours you’ll be paying for real estate tax, association dues, mortgage and other costs.
Time and commitment
It may take you two or three years at least before you get a place to call your own.