Owning a home is one of the greatest dreams most people have. Having a home you can call your own does not only gives you pride but it also offers you a feeling of security, satisfaction, and achievement. Unfortunately, not all people are not fortunate enough to buy their own home. Some sort to renting, instead.
One of the major decisions you may need to come up with at least once in your life is whether you will rent or buy a home. This decision can become more complicated if you already have a family on your own and that you will have to provide for their daily needs as well. Regardless of the circumstances, you will have to choose one of these options.
If you are torn between whether you will buy or rent a home, here are some factors to consider that can help you towards making the big decision.
Buying a new home is a major financial investment. Regardless of whether you will buy or rent, you will need to consider your financial capacity. Ask yourself these questions:
Are you now in the stage where you can already buy a new home in cash?
If you intend to get a loan, are you financially capable of paying off long-term debt?
Have you paid your outstanding loans or debts- student loan, salary loan, pending hefty credit card debts, and any other types of loan?
Do you have enough savings to cover the monthly amortization in case you get unemployed?
Do you have a permanent job or a stable source of income?
If your answer to these questions is no, then it may be financially impractical for you to buy a house as of the moment. The best option left for you is to rent a house. Also, if you are still starting a family and you still don’t have a full emergency fund saved, renting is a smarter decision.
Convenience comes in many forms. For instance, if you plan to relocate to another place at some point, you may consider renting instead of owning. If you buy a house and you will need to relocate, you cannot just pack your things up and leave your house. Instead, you will have to sell your home first before you fly out. Note that, selling a home can be quite a lengthy process. Whilst, if you are just renting, you can easily pack up and travel anytime you want.
Needless to say, buying a house will give you entire ownership over the property. You can do everything you want with your property and improve and design it according to your preference. You also don’t have a landlord to attend to. When renting, you normally can’t alter the property any way you want as the ownership of the home is still on the hands of your landlord.
When you buy a home, you are solely responsible for the maintenance and repairs. Over the years, your home would need to be repaired more often. Aside from the repair and maintenance of the building itself, you also need to take care of the costs of repairing your HVAC system, plumbing, and electricity lines.
By renting, on the other hand, you do not have to worry about the repair and maintenance expenses as these are generally shouldered by the landlord. For instance, your HVAC system breaks, you can simply ask the landlord to fix it without you paying any additional cost.
Still unsure what to choose? Well, how about talking to a reliable realtor. The realtor can help you decide whether it is better for you to rent or buy a home.