Deciding on your first home is a huge milestone. The question that most homeowners face is this: Should I rent or buy a home?
It depends on several factors.
Let’s take a look to help you narrow down your decision.
How much are you willing to pay for your new home? Will you be buying a bare bones kind of house or are you more into furnished and turnkey types?
Budget plays a big role on your new settlement.
This also means that whatever you can afford goes for what you put in and take away from your home.
For example, if you rent a bare house and decide to renovate, will you be ready to part away with it when you move later on?
Decide on your funding first before everything else because your resources will limit you to other factors to consider when buying your new home.
When you’re deciding upon “should I rent or buy a home?”, location is always important.
How’s the weather during the seasons?
How does the house sit well through them?
Will it be close to common institutions like airports, schools, supermarkets and parks?
How long is the drive to and from your work?
Is the neighborhood safe and well oriented to your lifestyle (I.e. Family friendly? Are there many singles in the area, etc?)
Another factor to consider when you’re contemplating if you should rent or buy a home, is your residency.
Will you be permanent or temporary?
How many will be living in the dwelling?
Are there any additional fees for extra people (for renters)?
Knowing this can save you costs in the long run. It’s also a way for you to gauge on the question, “should I rent or buy a home?”
Many renters feel that the temporary status that they have suits them well because they want to move to another city. On the other hand, long term dwellers feel that buying a home is the right choice because it can give them the security they need.
Both renters and buyers are concerned of the ownership that comes with choosing your own home. Just like the factors on budgeting, ownership has its pros and cons.
For renters, usually you can enjoy fixed rates if you pay your rent annually or more. But the downside is if the landlord decides to change their fees, the rent can hike up or have additional amount on maintenance. But if you do decide to move to another place, it’s easy to discard and move out.
For home buyers, you can be rest assured that there’s fixed mortgage no administrative fees if you draft this information in your real estate contract. But then since you’re living there for a long period of time, it also needs maintenance. Another thing is can transfer the ownership to your kin when you buy a home.
So if you’re still asking the question, “should I rent or buy a home?” I hope these factors have made it easier for you to make your decision.