To buy or rent your new home is always a question for debate and analysis. No wonder since deciding on homeownership is a big financial decision. It will influence your current financial status as well as your financial outlook and standing for the fosterable future. So, if you should buy or rent is not a question to be taken lightly. You have to take into account many variables. But, make sure that besides the tangible and measurable you also consider the intangible and often more important aspect of what suits you.
Both of these options are connected with certain benefits and downsides. They usually come down to what you can afford as well as to what you need and want. You may be interested in settling down and planting your roots which means that you might be interested in owning a home. At the same time, you might want flexibility and freedom of moving around in which case you might prefer to rent. Ownership for you may include stability and a sense of community at the same time renting is not as simple as throwing money away.
So, clearly, the decision to buy or rent your new home is not that easy and depends on a lot of factors and preferences. Let’s make a quick analysis of some of the aspects of both options and what they may mean to you.
The issue of whether to rent or buy your new home is all about the good and the bad sides of both choices. So, the good side of renting is at the same time the bad side of buying. So consider:
- Flexibility – when renting you have the freedom to move and explore your professional and personal options. If you buy a home you get tied down and cant relocate as easily.
- Repairs – you do not worry about repairs and the upkeep. If you buy a home you get the responsibility of caring for it and investing in its preservation
- Renovation – As a tenant, you can’t renovate your rental home but there are ways to make it cozier. Homeowners have the freedom to make their home a dream come true.
- Living cost – You can live in a desirable neighborhood for less money if you rent. Buying a home in such a neighborhood may be financially impossible or too expensive for you.
- Saving money and profits – Usually homeowners save money in the long run from tax deductions, they also can turn a profit from the increase in property value. The risk of turning a loss is also real but this is not even an option for tenants
One of the questions that arise when it comes to this matter is the cost. Renters usually have fixed rent and expenses that are known in advance. Sudden changes or lease negotiations can influence rent but usually, the cost is fixed. As a homeowner, you are always at risk of unexpected expenses. Perhaps you might have to repair some damage around the house that was not planned. The cost of ownership is usually higher than the combined rent.
Building wealth and value
Investment in a home is usually seen as a way of building wealth. You invest and expect to increase the value of your property. Refurbishment efforts and increasing property values can lead to an increase in wealth. But the risk of the market turning or the neighborhood becoming undesirable is real. Your home may still lose value at any point due to unforeseen circumstances. You are not subject to changes and risks like this when you rent. The value of the property is not an issue here.
Time and effort
Owning a home leads to the investment of time and money. Homeowners always have some chores to do around the house. Plumbing repairs, upkeep of the yard, room repair, and maintenance all take money and time. Maintaining a household can be expensive. At the same time, renters don’t have to worry about it. The landlord is responsible and must make repairs and take care of the maintenance himself.
So, to buy or rent your new home is not an easy decision. You have to research and gather the data on this sort of decision and investment. Research and evaluate your needs and preferences before you decide.