Tuesday, April 9, 2024

Renting Or Buying? Making The Right Decision For You.

November 11, 2016 by  
Filed under Money/Business, Weekly Columns

(Akiit.comIs it better to rent or buy? The answer to this question isn’t quite as simple as most people think. There are a lot of complicated factors that play into this decision that you must be aware of before making a final call. You might think that it’s better to rent because then you don’t have to deal with an expensive mortgage repayment. Or, it’s far safer to buy because then you have property that you own and can actually use for yourself. If you base your decision purely on these two factors, you’re not seeing the full picture. So, let’s break it down into some easy pros and cons.

Pros Of Buying Property

One of the biggest pros of buying a property is that you own it. Once you’ve paid off the mortgage, it’s yours, and you can do with it as you will. It’s also a great form of investment because it keeps your cash safe. Typically, property is often seen as one of the securest and safest forms of investment.

You also have complete creative control over the property. You can change it how you like, making renovations and essentially building your dream home. If you want and you have the money you can complete a full remodel on the house. Or, you can leave it as it is. You can also keep the house in whatever state you like without the worry of a charge from your landlord. You don’t have a landlord and while the mortgage company may own part of the property they have no say in maintenance.

Owning a piece of property can also feel a lot like a safety net. If you lose your job or your finances fall short, it doesn’t matter. You will always have a roof over your head and a place for your family. It’s also true to say that a lot of people have escaped debt faster because they owned their home. They were able to sell it and in doing so, quickly pay off what they owed.

Cons Of Buying Property

That’s not to say there aren’t issues. One of the first things you’ll need to do when buying property is compare mortgage rates. If you do this, you should be able to find a mortgage deal that is affordable but this isn’t always a guarantee. Although people often buy property to escape the rent bill each month, it’s essentially replaced by repayments. That’s why you want to make sure that they are as manageable as possible.

Then there are issues that were previously covered by your landlord. If there was a maintenance issue with the property, it would have been fixed by the landlord. They may even have handled the repairs and other expenses. This is not the case when you own property, and it could lead to some rather expensive bills to pay.

Benefits Of Renting

Alternatively, if you continue to rent, say, one of the cheap apartments for rent in austin tx, there are some advantages that people often overlook. Firstly, you can guarantee that the cost of your rent won’t rise or fall. This isn’t a guarantee with those mortgage repayments. If they are fixed, it’s typically only for a short period. After that, you’ll find that the interest on the payments often fluctuates.

Renting is also often considerably cheaper with fewer bills to pay and less council tax. Due to this, it may be more manageable financially compared to buying. Although this will typically depend on your financial situation.

Through renting, you will also have more freedom. If your career is still changing and evolving, you might find it easier to move around if you rent. It certainly is a lot simpler to end a rental agreement compared with selling a home. 

Problems With Renting

Of course, there’re two sides to every penny. In this case, you need to think about the fact that when you rent it is dead money. You don’t benefit from what you’re paying, and one day you’ll think about how much you put into a property that you no longer have. You may have spent years living in a property and paid thousands without ever getting any of that money back. Yes, you did get benefits by having a comfortable place to live. But at the same time, now that you’ve moved on, what do you have to show for it? The answer is absolutely nothing, and this is the main reason why people buy property.

Ultimately though it’s a matter a preference and personal situation. We’ve given you the facts, and you’ll have to consider which option is right for you.

Staff Writer; Donald Jones

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!