If you are thinking about buying or renting a home, you should be aware of the merits and drawbacks associated with each of them.
There are several questions one can ask when making the decision to buy or rent a home. They include;
-What are your family and career goals?
-How long are you planning to be in that home?
-How much savings do you have and what can you manage at the moment?
-Would you like take care of all repairs and maintenance?
-Do you want stability or flexibility to move around?
The first major consideration you need to look at while deciding either to rent or buy a house will be how much it will cost for either decision. If you decide to rent a home you are subjected to monthly costs during your time of stay. The monthly rent you pay may not be inclusive of utility bills. Most of the leases will require you to make a huge deposit in your first month. You should be aware that tenants can increase the rent every time your tenancy agreement ends.
What to consider when deciding whether to buy or rent a house.
Advantages of renting.
-You are not responsible for repairs and maintenance
-The paperwork and upfront cost involved is nor much
-In some cases, you can be able to build your credit rating
-You will not be worried about the falling values of that home.
-You will be more flexible because you can move from one location to another without worrying much.
Disadvantages of renting a home
-You will not be able to build on the equity
-The landlord can raise the rent or sell the property, therefore, inconveniencing you.
-You may have to move every now and then
-You may have limited choices depending on vacancies available.
Here are the advantages of buying a home.
-You will not have to answer to any landlord.
-You can be able to upgrade, improve your home to your liking
-You may be able to build on your credit and equity
-You will become more stable. This is especially if you have school-going children.
The drawbacks of buying a home.
-You will be susceptible to lose a lot of money if the value of homes decline
-You are totally responsible for repairs and maintenance.
-There is a lot of paperwork and money required to acquire the house.
-You will be subjected to extra expenses beyond mortgage payments.
The reason one can buy a home.
When you buy a home, you start becoming stable. It is a great investment. If the prices of your area have been rising, you can buy a home as soon as possible to avoid being priced out in the future. If you want to sell it in the future, you can make a sizeable amount of money in profit. There are reasons you may choose to buy a house. They include;
-If you are planning to stay in a given area for a long period of time.
-If you have a good credit score and are eligible for a market-leading mortgage whose repayments are affordable.
You may also choose to rent a home with some good reasons. They could be;
-If you surely cannot afford to buy a home at the moment.
-If you are not aware of how long you will be staying at a place due to work or family-related circumstances.