Depending on the person’s current situation, renting and buying both have their pros and cons. Renting allows you to avoid maintenance costs and taxes while owning a home may be more affordable depending on where you live.
If you can’t commit to a certain place for at least three to five years, buying is probably not the right option for you. The property appreciation you will likely see won’t offset the costs should you decide to sell early. You won’t guarantee a return on a purchase because that will depend on inflation.
Renting may be a better option
It, however, does not make renting the winner in this debate. It’s just one reason you may realize renting may be a better option for you personally.
Renting is a better option if you don’t see yourself staying in the same place in the next 3 to 5 years. Many things can happen in this timeline such as you moving to another company, getting married, or migrating abroad. It will take quite a while to sell your house when you see yourself in any of these situations.
Other perks it offers
Other than the expenses related to buying your own house, renting also saves you from the stress that comes with repair and renovation. There are amenities you may enjoy for free say you rent a condo such as swimming pools and gym. This convenient lifestyle proves you don’t throw away money when you rent.
Do you feel you’re still not ready to buy your own property? Why not rent, for now, save on mortgage fees and all, and use the money later on for down payment of your own house? No one is rushing you.
When you’re ready to buy
Renting is a better option if you are single, still undecided, and unready to commit to a single location for years to come. There are many important factors to consider other than money.
However, you better buy a property now than rent when you’re ready to settle down in terms of career and civil status. Do this if you have already decided on the city you would like to spend the rest of your life in. Most importantly, when your monthly earning can sustain all the house ownership expenses.
When you buy a property and settle all the fees, it’s yours. Tax credits also offset some of the money you paid on homeownership. The last upside to note is you can get a high return on your purchase when the economy progresses.
Adults are smart with money
But how do you know you can afford it? You may use the 25% rule that says your housing costs should not exceed 25% of your monthly earning. Keep in mind you also need enough money in reserve in case of emergency.
As a responsible adult ready to buy his or her own property, you should know it is pointless to do it for the sake of owning. Think of the risk of losing the house to the bank if you become unable to pay the fees on time. Those who advised buying is better than renting may not be there to help you when it happens.
There really is no winner between the ‘Rent vs. Buy a Property’ debate. The answer is different for every individual depending on their personal situation. Many factors also come into play when deciding other than money so the trick is to assess your current capacity and long-term goals to arrive at the right answer.