The question of whether you should buy or rent has been an ongoing conversation and struggle among many individuals. There are so many different factors that ultimately go into your decision of buying or renting. Of course, having ownership of a house is an attractive option for many people, but it may not be the best option for everyone all the time. Here we will talk about some of the reasons you may want to buy or rent.
Buying
To some, owning their own house is a dream. It can turn out to be a very expensive and unaffordable dream if it is not planned and thought out correctly. Before you go and settle on a house, there are a number of questions you will want to ask yourself to ensure that you are serious about buying a house. Do you have enough saved up? When looking for a house, you want to be able to have anywhere from ten to twenty percent of the asking price saved up so that you can put that amount down on the house. Putting twenty percent down on the house will allow you to get past the private mortgage insurance cost that comes with initially paying less than twenty percent of the value of the home. You will also be paying less interest on the home over time. Do you have other money saved for emergency expenses? You do not want to drain your entire savings on a down payment of a home. You would still want to have money left over after putting down a down payment. Do you have any other existing debt? When buying a house, you are putting yourself in massive debt through the mortgage you take out on the house. Having other debts can cause a large financial burden on you over time.
Renting
Renting can be a viable option for many people who are looking to save money and not have to worry about all additional costs that come with owning a house. When renting, you do not have the freedom you would have if you bought a home. Many landlords will not allow you to renovate or drastically change their property. You are also not building up any equity through renting because you do not have ownership of the property. Renting is a good option if you are still paying off debt, such as student loans or you are continuing to save up for other things in the future. When renting, you are not tied down to one location and are free to move from place to place if you want to. You also do not have to be too concerned about the maintenance of the property, that is the landlord’s responsibility.