Buying a home is considered a rite of passage for many young people. More and more nowadays, it is becoming difficult to get onto the property ladder, meaning that people are renting for longer. There are advantages and disadvantages to each, and it primarily comes down to personal preference.
Here are some of the things you should consider when deciding whether to buy or rent:
Renting is often better for younger people who want to travel for work and pleasure. Buying a house is a significant, long term commitment that will tie you to a particular area for years or decades, and selling can be a long and complicated process. Most rent agreements will allow a tenant to quit the lease with a month’s notice.
You should ask yourself whether you are ready to settle down before buying a home. If you want a family, then owning your home will provide a base for your family to grow.
Renting comes with the risk that you will be evicted, which can be distressing and costly. Owning your home will allow you greater stability and the peace of mind that you cannot be turned out of your home.
You will be responsible for any repairs as a homeowner. You should ensure you have enough savings to cover any unexpected costs.
As a tenant, it will be down to your landlord to fix anything that goes wrong. You should choose a landlord wisely as your relationship with them will directly impact your quality of living and service.
You will need a significant down payment to buy a home, making homeownership impossible for many young people. Check out The Home Loan Expert to give you an idea of how much you will pay for a mortgage in your area.
Renting may be the cheaper option, but over time it will cost you more. After a mortgage is paid off, you will only pay for upkeep, whereas you will have to continue to rent permanently.
While many landlords will allow you to do minor redecorating, you will not have the option for significant renovations in a rental property. Owning your home gives you more flexibility to put your stamp on it.
If you are hoping to save for the future, buying your home will help to diversify your investment portfolio. Property is a stable investment and one that is likely to grow in value. You could use spare rooms to rent out in the future for extra cash.
If you find a rental property with decent rates, you will have the advantage of saving for longer without dipping into your savings for a deposit.
The decision of whether to rent or buy is a personal one. You should consider your goals and aims for the future. If you see yourself with a family, then buying a home may be the next step. If you would rather have flexibility, then renting is the way to go.
*Photo by Kindel Media