Renting vs. Buying Property
A lot of people are having a tough time deciding whether to buy their own house or rent first. There are a lot of factors to consider when making this decision. Buying and renting a house has its own advantages and disadvantages that home seekers need to know first before having an informed decision.
The advantage of buying a property is that its rates depend largely on the state of the housing market. This is very significant especially now when the economy is down. A lot of people are turning away from buying a house because they fear that they might not be able to keep up with the monthly mortgage payments. Also, buy to let and commercial mortgage products are hard to obtain. Banks are tight on their mortgage lending nowadays knowing that the economy is not letting up anytime soon.
Also, on top of the monthly payments, you also have to worry about the legal fees, stamp duty and agent fees. In the long run, the disadvantage of owning your own property is that you have to take note of the maintenance of the property and all the cost that goes with it.
On the other hand, the big advantage of owning a house is that you will be purchasing a big investment. Buying a house adds to your personal assets. A lot of people have already become rich through property investing. Also, you can do whatever renovation and redecoration you desire with your house. You can add a garage, a porch or even a new bedroom.. The possibilities are enormous for you to explore the full potential of the space that you buy.
Buying house also means that you don’t end up wasting money on renting a property. If you ask a lot of home owners they would consider renting a property as good as burning their hard earned cash. Imagine, paying monthly rent and bills for a house that will never be yours. Plus you will always have the thought of eviction and non-renewal of contract hanging over your head every day. You do not have control of a landlord who may at anytime decide to rent out your place to a new tenant. You cannot do anything else but to look for another property to live in.
The advantage of renting is that people who are only starting their career can have a place to live with relatively low start up cost. This way, you can save enough if ever you decide to buy a house in the future. Renting also gives more flexibility. If your job requires you to move to different places regularly, then renting might be the house option for you. However, for the long term, buying a property should always be on the priority list to ensure that you get on the property ladder quickly and potentially get started in your property investment career. The earlier you jump on the property ladder, the earlier you can put your money to work to build property assets which will be worth considerably more in the years to come.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
