Buying a House vs Renting - What Works for You?
Sometime in your life, you’d be contemplating whether it’s time to buy your own house or carry on renting. Before you make a quick decision about it, you need to think it over and weigh the pros and cons of each choice to make sure it’s going to work for you.
If you’re looking to finally reap the fruits of your labour and settle down, then by all means, choose the best home for you to buy and own. But if work still requires you to jump from one location to another for a prolonged period, you might want to hold that thought for a moment and keep renting.
And until you have figured this out, you have to think twice about making a leap of faith. After all, buying a house is a huge financial commitment that you will get yourself involved in.
What’s in Buying and Owning a Home For You
Reports had it that if you’re looking at buying your own home at this time, you are likely to save as much as £1,300 a year on your mortgage repayments as opposed to spending the money on rent. The figures may vary though, depends where you are renting at the moment and where you’re looking to to buy a house in.
Once you settled your mortgage over time, your property’s value can increase and you can leverage on it should you want to borrow money to start a business or buy another property to let. You can also resell the house for a higher price.
If you’re also factoring in retirement, you’re at an advantage owning a house. By your retirement age, you are very likely to have repaid the mortgage, hence your benefits can all be spent on your living expenses. If you’re still renting when you retire, you’ve got to be receiving a huge sum of pension to be able to afford rent and cost of living at the same time.
Moreover, buying your own home entitles you to do whatever remodelling and renovation you want with it - as opposed to renting where any changes to the property are subject to what your landlord allows you to do.
The Big Challenge of Buying Your Own Home
While it promises a bright future, buying your own house has its own challenges, too. For instance, it’s such a huge financial commitment that one wrong move can break you. There’s also the issue of managing the household, maintenance, and repair work. They can stretch you too far sometimes in terms of budget management.
That Thing About Renting
For some people, renting can also be very convenient and beneficial, especially those who are often designated work locations for a certain period. If you have your own house, you’ll have to sort out the issue of who lives there while you’re away. Are you going to rent it out or sell the house? Who’s going to manage the house if you rent it out?
Maintenance and repair work are also generally taken care of by your landlord, so it’s only a matter of letting them know right away if the roof leaks or the walls are a bit damp and it will be sorted.
Also, if you’re unable to afford buying your own house yet, you’ll do better with renting. Find a safe and comfortable apartment to rent and save some money that you can use as deposit for your future home. What’s challenging about this though is while you’re busy letting time pass renting, you could be missing out great mortgage deals and reasonably lower house prices.
To say the least, buying your own house or renting is not just about lifestyle but also an economic choice. You need to carefully weigh your options and how one would suit your living conditions better than the other.