Wednesday, January 8, 2014
People who are looking for a new home often have to face the decision of whether to rent or buy. While this decision is a largely personal one, there are key points to consider in choosing the best option for you.
Assessing your financial situation is the first step in any investment decision. Know what you can afford for initial deposits and monthly expenses as well. Buying a home will definitely be more expensive, but if you’ve looked into your finances and can afford buying or renting, there are still other financial aspects to consider.
The amount you pay for renting a home is literally just for the rent. When buying a home, paying off monthly home loan dues is going towards your home equity and the eventual ownership of a property. While the monthly payments for acquiring a house are steeper by a mile, real estate can be a great investment. Appreciation of the property value may grow over time. When you decide to downsize your home at retirement or simply move to another house, selling your home can actually bring in some profits.
Renting a home offers you flexibility to move houses anytime you want. Certain life changes, such as expanding your family, may require you to move to a larger home. Moving to a different workplace may also prompt you to move your home to a location nearer to your new place of work. On the other hand, owning a home is a more stable option. It is no easy task to just suddenly leave your home and sell it. Consider where you are in your life and whether you need more flexibility or stability in your home.
Having your own home has some responsibilities attached to it. Repairs and maintenance work expenses will have to be shouldered by you. You will also inevitably devote some time to either doing the repairs yourself or overseeing repairs done by hired help. These responsibilities come with the perks of the freedom to design your home however you want, giving you an opportunity to create spaces that you can truly call your own. On the other hand, a renter will have little to no worries on repairs and maintenance, but there will also be little room to get creative with your space.
In the end, the decision to rent or buy a home depends on many factors that only you know the answer to, but getting acquainted with these considerations will get you on your way to the best option. - Aislinn Kee