Which Is Smarter? Do you buy or rent a house? The following questions will help you decide.
Is it better to buy or rent a house? Some people have moved into their new homes just to find themselves missing the pleasures of renting. On the other hand, some also expressed preference to owning over renting a home. This question will definitely come to you at a certain time in your life. To make a good decision about this, you should first ask yourself other questions.
Is a house an important investment to make in your life?
If your answer is “yes”, you still need to re-think your living arrangements in the future. While people were used to their homes being something that they can downsize or liquidate during retirement, this is no longer the case, as house values today can easily go up and down. However, this does not necessarily mean that your house would not be worth more someday, compared to when you would have bought it, but if you are looking for a robust investment portfolio more than you want to purchase a home, it is best to talk to an agent and a financial adviser first to help you decide to buy or rent a house.
Are you in the appropriate age to buy a house?
If you are in your 20s or early 30s, then there would be wise arguments that discourage you from buying a house. This does not mean that you are not responsible enough to own a home, but simply because you are still young, and there would be many opportunities in life that could take you away from your “base”. However, if you’re looking toward the future then the purchase of a home at such a young age could provide you with a mortgage free lifestyle much earlier than most in later life.
Can you handle the stress?
When looking to buy or renting a house different situations can occur that have a bigger overall impact. Generally, people weigh the financial aspects of purchasing versus renting, since the former is likely to be the biggest investment they would make in their life. This means that you will face one big factor…stress. So, if you have recently made other life-changing decisions, such as marriage or having a child, it is best to put off a home purchase until things settle down. Doing otherwise would lead you to missed payments that will result in poor credit score or your home being repossessed.
Have you crunched all the numbers?
One big mistake you would commit as a future home buyer is comparing a month’s mortgage payment to a month’s rent. Take note that there is a lot of additional fees you need to consider when making a fair comparison, including property taxes, principal interest, insurance, maintenance and homeowners association fees. The maintenance costs in particular cannot be underestimated, as there would be many factors that could possibly affect you.
So, in answer to your question “Do i buy or rent a house?”. It really boils down to your current circumstance and generally speaking, if you feel ready to buy your first home then you’ll know. If you’re financially stable and have enough income to support yourself then purchasing is indeed a very wise investment but not one to be taken lightly. In terms of renting, yes it is much easier however we guarantee that a while down the line, you’ll feel a little troubled at the amount of money you’ve paid toward someone else’s mortgage. The question isn’t “what’s better”, the question is, “what suits me best?”.
Have you decided to buy a house over renting or do you prefer to rent a property and not buy? Share you experiences and thoughts in the comments below to help others that may not be sure what to do.