Perhaps you might be wondering whether to buy or rent your own home. If so, both approaches have distinct advantages and disadvantages. In renting your own home, you’ll find that you accumulate more funds to spend. Conversely, owning your own real estate provides a sense of security as it is a long-term investment.
Below are a few factors you should consider before making the decision to buy or rent your own property.
Advantages of Renting
Fact # 1: Mobility
Renting your own home provides with the flexibility to do what you want. As a tenant, it is easy for you relocating to a new location. All you have to do is terminate or renegotiate a lease with your landlord. After doing so, you’ll be free to relocate wherever you want. On the flip side, it is difficult doing so as a homeowner. In contrast, it is very difficult getting out of a commercial property for sale mortgage. Although you can sell your property, it takes some time. Also, the process of canvassing for a buyer can be long and uncertain.
Fact # 2: Flexibility of Property Prices
When you rent your own property, you enjoy discretion in the price that you pay for housing. Based on your income, you can select to live in an upscale, fancy condo. Also, if you ever lose your job, need to start a business, or switch to a cheaper household, it’s easier to do so. Besides, a commercial property for sale locks you to a mortgage for between 15 and 20 years.
Fact # 3: Cheaper Expenses
In most locations, renting a house is cheaper than buying one. Typically, most people err in comparing a landlord’s mortgage with their monthly rent payments. However, mortgage payments are just a fraction of your overall expenses. To top that, homeowners are expected to pay maintenance fees, repairs, and accounting charges. Plus, as a landlord you’ll need to cater for fees for property management, legal, vacancies, and bookkeeping services.
Advantages of Buying
Fact # 1: Asset Appreciation
If you ever need to sell your property, there is the possibility that you’ll sell it at a much higher price than you paid for it. Even so, housing prices have not risen dramatically in the past couple of years. Besides, a property appreciates in relation to its locality. This means that you’ll only benefit from high prices when properties appreciate in your neighbourhood.
Fact # 2: Protection against Inflation
Then again, owning a home with a fixed rate mortgage means that your monthly payments remain constant over time. What’s more, monthly payments never change no matter which way interest or inflation rates swing. On the other hand, renting your own property doesn’t accord you this luxury. Rising inflation and interest rates will always affect the amount of rent you pay.
Fact # 3: Emotional Satisfaction
An advantage of owning a property is that you get to exercise total creative control. This means you can alter a property’s design including décor, renovations, and landscaping to suit your unique tastes and vision. Moreover, your landlord will never renew your lease. Often, when a landlord changes a lease’s terms, tenants plunge into the market looking for a home.
Sometimes, it’s beneficial renting a home than buying one. But buying your own home ties you down to that property for the foreseeable future. Also, it can be challenging getting rid of the property if you switch careers or need to relocate. Even so, renting lets you enjoy living in a nice house, but with more flexibility