Debating between buying or renting a home? Know the factors to consider
How do you know if you should buy or rent a home?
With adulthood you start to wonder about things like: what you’re having for dinner today, if you have clean work clothes, or when you’ll be able to take a day off to marathon your favorite series. While it would be ideal if those were the only questions you had to answer as an adult, perhaps one of the most important and serious ones goes something like this: am I better off renting or buying a home?
If you are one of those who spend all your time dreaming of an independent life, you may wonder which option is the best to take the leap. On the other hand, if you are one of those who are already experiencing the monthly cost of such independence, you are probably debating whether to continue renting a place to live or to go ahead and buy a property.
In either scenario, being able to know which of the two options is more convenient for you is undoubtedly important, since both will have an effect on your present and future life plan. Therefore, we want to help you choose. Below, we share with you a series of factors that you should take into account when deciding to buy or rent a house.
Factors in determining whether to buy or rent a property
What do you need to be able to answer the question of whether it is better to buy or rent a house? Ask you more questions! But don’t worry, every answer you get will bring you closer to making a smarter decision. In the end, whether it is better to buy or rent is for you to decide and only you will know.
There is no definitive or correct answer. The decision will depend on the financial and personal situation you are in, as well as the lifestyle you want to live. To begin to put the two options on the scale, ask yourself the following questions:
- How long will you be in the area where the residence is located?
a. If you have already identified where you are interested in living and plan to stay in this area for a long time, consider buying a property. We recommend that you make this investment if you are sure that you will live in the place for at least 5 years. A residence comes with high expenses in addition to the sale price, so it is not worth investing all that money if you plan to stay for less time.
b. If you have a nomadic soul, renting a house is the best option for you. Renting provides you with the flexibility to explore different locations before deciding where you want to settle. Also, it may be better for you to rent if your job requires you to travel constantly for extended periods of time.
- Which costs best fit your reality?
a. Buying a home is not just about being able to afford the asking price. When you own a property you will have to cover other expenses and additional costs, such as maintenance, repairs, and taxes.
b. Renting does not come with these additional costs. You only have to pay for rent and other utilities such as water, internet and electricity. In some cases, these utilities are even included in the rent. This will be more economical for you and you will know exactly your monthly expenses without fluctuations. However, there is always the possibility that your rent may increase when the contract is renewed.
- How much responsibility for repairs and maintenance are you willing to take?
a. Undoubtedly, being an owner carries a great responsibility. As the owner, you are responsible for the maintenance and repairs of the residence. In case you are at a point in your life when you do not feel ready or do not want this responsibility, it would be better to rent.
b. If you want to unleash the inner designer in you, consider shopping. Most of the time when you rent a house the landlord sets limits on the renovations you can make to it.
- What are your investment goals?
a. One of the advantages of buying a property is the ability to generate an investment. By buying you can make a profit if you decide at some point to sell the property. However, keep in mind that this may be affected if the property drops in value. You also have the option of renting the property, this way it will remain yours and you will be able to generate a passive income.
b. By renting you don’t take this risk, but you won’t build that capital either. However, this is not the only way you can generate a profit. Renting can even help you accumulate savings that you can then use in other investment sources.
Some myths about buying or renting a property:
– When you reach a certain age you have to buy a house.
Regardless of your age, it is best to consider the above factors in making your decision. For example, you may be 30 years old, but if you don’t plan to live in one place for a long time then it won’t make sense to make this important investment.
– You spend more renting a house.
Renting can be a more cost effective way for you to live. For example, renting a place may mean that you have more money left over from your income that you can use for something else you want.
– Selling a house is a nightmare.
This does not have to be the case and even less so if you do it with a professional. Through Findit you can find the ideal real estate agent for you, who will help you get the most value out of your investment without having to go through all the hassle.
Buying or renting a house has never been simpler
As you have seen throughout this article, deciding whether to buy or rent a home involves analyzing different aspects of your life. Once you have identified which option best suits your reality and desires, you are ready to begin the house hunting process.
