If you are to move from your parents’ home, would you choose to rent or buy your new home? Some would prefer buying their own home before moving while others would suggest you rent. But it is a choice you and only you will have to make. Renting vs. home ownership is a huge leap for someone who is just starting up. But if you are financially capable and ready, there is no reason for you not to buy your own home. Unless, you need the flexibility that renting offers. As you know, you can easily terminate your rental contract if you need to move somewhere else again.
When to rent and when to buy a home
Although it may seem that buying a home is very beneficial, it may actually prove to be against your best interest. On the other hand, renting may also be more expensive than buying a home. Overall though, both have advantages and you need to know them before you opt to buy or rent. Here are some circumstances where buying is better than renting and vice versa:
- Buy when you have the resource for it. One of the best reasons you have to buy a home other than you actually need it is financial freedom. Buying a home is a responsibility and you surely don’t want to put your hard-earned money to nothing over time. Thus, make sure that you have the resource to buy your dream house either in cash or instalment.
- Rent if you love the flexibility that renting offers. Apartments and condos are very flexible living spaces. You can almost easily terminate your contract if you need to move to another place or unit. This is one of the reasons why many people prefer renting to buying a home. In fact, this is one of the most valid reasons of renting. It gives you the freedom to move any time unless the contract forbids you. Even so, you can still move as long as you pay the necessary fees on this.
- Buy if you want to invest on something tangible and resalable. Buying a home is definitely the biggest financial decision you have to make so ensure you have weigh all the pros and cons before actually going for it. Nevertheless, this is also the biggest investment you can have. And you have the chance to increase its value over time. A little makeover and improvement here and there is all it takes.
- Rent if you don’t want to spend on huge maintenance costs that owned houses may present. Owning a house is truly a huge responsibility. You will take care of its maintenance and taxes. If you are ready for all these things then you are definitely good to go. But if you are not, you are probably good with renting vs. home ownership.
The above circumstances are intended to help your decision making on whether you are better off renting than owning a property as big as a home. For more information on Renting or Buying Options in your Area here is a great rent vs buy calculator.