Rent Vs Buy, Which is Better?
The above question might seem like a no brainer, but many people still aren’t sure which way to go. If you want to get your foot on the property ladder these days, you run into trouble immediately. The price of buying a home has never been higher, but despite that, the advantages of buying versus renting are still extremely favourable.
It’s easy to see why many people opt to rent. It’s easy, there’s no long process to go through, it will cost you less initially, and you can call your landlord whenever something goes wrong, and they usually fix it. Despite that, you don’t actually own that property, you can be asked to leave at any time (at the end of a contract or if there is a problem), you will pay infinitely more money over the space of your renting life compared to buying, and you can’t make any major changes to the property itself.
Buying a home on the other hand, yes, the process is long and it is tortuous in some cases, but the end result is more than worth it. You get to own a home, it becomes something you can pass down to your children in the future, it’s an investment which you can sell on, an asset, and you can make any changes you like to it, without having to seek permission. Once your mortgage is repaid, you don’t have to pay anything every month apart from your utility bills.
The downsides? Buying is a stressful time, and saving up for a down payment in the first place can be a difficult thing for most people.
Take the Plunge?
How do you know which is best for you? It’s something you need to consider very carefully, but it’s also something you need to think about for the future. If you continue to rent for the rest of your adult life, you’re going to be literally throwing away cash every month. Yes, you have a roof over your head, but that roof isn’t yours. You don’t actually have anything to show for your efforts at the end of it all. You have nothing to pass down to your children, you don’t have an asset in your hands.
If you buy a home, you don’t necessarily have to stay there. Some people feel worried about putting down roots, because you’re making a huge decision for your coming years. The thing is, you don’t have to stay there if you don’t want to, because you can remortgage and move on, or you can wait until your mortgage is finished and sell on, hopefully for a profit. This means your home is an investment, and a way to make cash in the future.
It’s about making sensible decisions for your years to come, and it’s also about doing your research ahead of time, to make sure that you know the process of buying, and don’t fall foul of the biggest first time buyer pitfalls. If you need help or advice, don’t hesitate to call Ramahi Real Estate Group today.
