Sunday, November 4, 2018

Rent Or Buy? How To Decide Which Option Is Right For You



When it comes to deciding whether to rent or buy, there’s really no right decision except what’s right for
you - though, you’ll soon find that everyone and their grandmother has an opinion on both options.


If you’re currently in the midst of having to make a decision, or perhaps you’re just thinking ahead for the
future and wondering whether to start saving for a new house, we’ve listed a few pros and cons for each
below.


Please remember that these are just general tips, and that only you know what’s best for you. Whether
you decide to rent or buy will always depend on a variety of factors relating to your personal
circumstances, your plans, and your finances, so don’t allow yourself to be too heavily influenced by the
opinions of others.


Renting


Pros:


  • More flexibility: with renting, you’re not as tied to one place as you’d be if you own it. Of course,
  • this doesn’t mean you can just up and leave when it suits you, but with a rental contract, you
  • simply give some notice and you can leave after that period. This makes renting a great choice for
  • those who move around frequently due to work or simply by choice.


  • Less responsibilities: as a rental tenant, you simply pay the amount on your contract and
  • whatever your own expenses are for things like utilities, etc. However, you’re not responsible for
  • any property taxes or even repairs. If you have leaking roof, it’s your landlord who will be
  • responsible for calling in the residential roofers, not you.


Cons:


  • Less choice: when you rent, you’ll often find that competition is quite tough, depending on the
  • location, and due to this, landlords can be more picky about who they take on as a tenant, which
  • can result in you having less choice over where you actually live compared to when you buy your
  • own place.


  • Paying someone else’s mortgage: one of the biggest things that put people off from renting is
  • the idea that they’re paying all this money per month towards someone else’s mortgage and that
  • they don’t have anything at the end of it after the rental period is over.



Buying


Pros:


  • You’re investing in your future: when you buy a place, although you may be committed to a
  • mortgage, at least you know it’s going towards something that you’ll eventually own outright.
  • Whether this is to provide you more security in your retirement, or if it’s to hand down to your
  • children, paying a mortgage off each month is made easier to take when viewed this way.


  • More choice and freedom: unlike renting, you’re going to have far less competition when it
  • comes to finding a place to live, which means it’s more likely that you’ll find a place you’ll really
  • like for the right reasons.


  • Can provide a second income: buying a place doesn’t mean that you’re stuck to a house for the
  • duration of the mortgage term. You can either sell and upgrade, or if you don’t want to sell off just
  • yet, you can rent out your place and add a second income - either that, or just have your mortgage
  • paid off each month.


Cons:


  • You’re responsible for everything: when you own a place, although it comes with many
  • benefits, one of the downsides is that you’ll be required to carry out any repairs that need done at
  • your own expense.

Getting a mortgage is harder than getting a lease: yes, you’re going to have more choice in where you live, but in order for that to happen, you have to get approved for a mortgage first, and that has some hoops you’re required to jump through first. Definitely more than what you need for signing a rental lease.

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