Buying Or Renting - Which Makes More Sense?

You've just been promoted and with your salary increase, you can now move out of your childhood home and start living independently. Perhaps, you're about to have a newborn and the space you're currently occupying just wouldn't do for your growing family. Or you're just tired of your current home and you feel that you need a change of surrounding. Whatever your reason may be, one thing is for sure - you're moving out.

Buy or Rent?

Now that you've decided that you're moving out of your old place, the next agenda would be to determine whether you're buying or renting. Of course, both options have their perks and drawbacks which can make the decision very hard to make. To help you in your predicament, below are lists of perks associated with buying or renting a property.

Why Rent?

Renting is the best option for people who have jobs that require them to travel a lot. It frees them from the financial responsibility that owning a house entails. It's also perfect if you don't want to worry about maintenance and repairs because these usually fall under the responsibility of the landlord. And of course, renting makes sense if your finances can't handle the expenses coupled with buying a house.

Here are the other advantages of renting a home:

  • Renting poses lesser risks - With the current state of the economy, one cannot truly say that he has a stable job. One day, you might wake up with no job and a mortgage to pay. With renting, you don't need to worry about this.
  • It makes budgeting easier - Because you know your monthly rent, you can easily set aside the amount before the due date. This gives you a lot of opportunity to plan out your finances.

Why Buy?

Buying would also be a good option if you're planning on staying in one place for a good four years. Apart from that, you also need to have a stable source of income and a good credit history. Why?

For starters, the seller would probably ask you for a five percent down payment for the property. You might think that five percent is not big at all but when you consider the current price range of houses today - it's big; not to mention the other closing costs associated with your purchase. You should also have the finances to cover occasional home maintenance expense and improvement projects.

Other perks of buying a house includes:

  • It gives you a sense of security - Owning a house gives you a feeling of security and stability. It's like you've finally found a place where you can let loose and completely put down your roots.
  • You get to live by your rules - Obviously, you can't do this with a rental home because your landlord may have laid down some rules about living in his property. With your very own home, you have the freedom to paint the walls whatever colour you want!

If you ultimately choose to buy, it would be best to talk to experts and get professional property advisory so you're sure that you're making the right decision.

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