Everyone has a different opinion on renting vs buying, but which one truly is the best route to take? That depends on so many different factors, it’s impossible to answer in general. But with the proper information, each individual can make an informed decision that best suits their current situation.
Buying a home is a major milestone for anyone and requires a lot more money, time, investment and long-term planning than renting. However, in the end, you’d own your home and aren’t paying off your landlord’s mortgage.
Could you buy?
When looking to buy you need to make sure you meet certain requirements for the bank. One of the first steps will be setting up a meeting to see exactly what you are qualified for and how much money you will need for your deposit. You may be able to get a guarantor to help secure your mortgage if you cannot come up with the entire deposit on your own. Once you know what you can afford you can take a look to see if any homes in your budget meet your personal requirements and weigh your options accordingly. Sometimes renting for a while longer may be a better route for you rather than opting to buy right away.
Consider ALL the costs
Buying a home can be very costly. Newer homes are less likely to have issues but cost much more initially. If you are handy than it isn’t that big of a deal. However, if you need to bring in certified technicians, even small repairs can be costly. If you are renting, your landlord is usually responsible for all repairs to your living area at no extra cost to you and by law must be done in a timely manner.
Can you make it yours – and who would that benefit?
Updating and making your place ‘home’ is completely up to you, if you own. But if you rent than you need permission from your landlord to make any changes to the dwelling. Even things as simple as painting need to be run by the owner. Any updates and changes you make may add value to the home. That’s great news, right? Sure, if you’re the owner!
The ups and downs
But don’t forget – sometimes property values drop and if you are renting that doesn’t affect your bottom line. If you are the owner, however, it could change the game dramatically for you. Buying is a long-term investment and you need to make sure you are ready for all the ups and downs of home ownership before you buy. There are so many different factors to buying a home and you cannot just up and move without taking several carefully considered steps first. Buying and selling a home can be a long process and can be very costly. Renting requires very little from you if you decide to up and go. So, make sure you are in a stable place in your life with clear goals and ambitions if you intend to buy.
Essentially, the decision as to whether you should rent or buy is dependent on your personal and financial situation. The most important thing to do is do your research and decide what is best for you in the long run.
