Owning a home might be a life goal for many but at the same time, it is not attainable for everyone whether for financial reasons, logistics, or other reasons. Given how the prices of the real estate market are always on the rise, buyers find themselves caught in a dilemma of finding the perfect house, in a convenient location, at an affordable price point; it is a difficult equation to solve. Taking into consideration these factors, renting becomes an option to keep in mind. But which is actually better for you? To answer these questions, let’s go through the pros and cons of both.
Pros and Cons of Buying
- A long-term investment that doesn’t lose value, on the contrary, it can make you more money since prices keep on increasing.
- The freedom to change, modify, and remodel according to your needs.
- You don’t have to deal with the hassle of landlords.
- Less flexibility to relocate according to job changes or other changes in family plans.
- Managing downpayment and installments can be a financial burden.
- Mortgage loans are not accessible to everyone.
As for renting, here are the pros and cons
- Ideal for those who travel a lot and whose jobs require relocation.
- You don’t have to worry about the huge amount of money that needs to be paid to buy a house.
- The landlord is responsible to hand over the property with no issues in terms of maintenance and repairs.
- No flexibility in remodeling the house or doing major renovations.
- Rent prices are uncontrollable and landlords can raise the rent at the time of contract renewal if you wish to extend with a new contract.
- No stability in the sense of having to move out suddenly if the landlord decides to terminate the contract or sell the property.
Now that we have gone through the advantages and disadvantages of both, how can you make that decision? You have to ask yourself these questions.
- How financially prepared are you?
Buying a house comes at a high cost, so you need to make sure you will be able to afford the installments and in case you will pay the full amount, you need to have some money left aside after paying. If you will go for a mortgage loan, you need to secure the downpayment and at least the first 2 or 3 installments to be on the safe side should anything comes up or go against your plan. If you can’t manage this, then there is no need to rush buying and instead consider renting until you are financially ready.
- How long are you planning to stay?
This is something important to consider for those who travel a lot. For instance, those who have a project-based job that requires them to travel a lot or relocate to different countries every year or two. In such case, owning a house is not really a necessity, renting will be a much better option.
- Which matters to you more, flexibility or stability?
Your lifestyle will decide this one for you. Buying or renting a house should be based on what you are after whether it is the flexibility to move and travel around or securing a stable life buy having your own house without having to rent here and there.
- What are your life goals?
You should have a full picture of your life goals including financial, family, and career. For instance, ask yourself whether you rather invest your money in a property or just keep a safety net in the bank. Also, if you want to grow a family, will that need a bigger house? Are you and your family planning to relocate in the future? Identifying your goals will help you decide whether you should rent or buy.
To conclude, there isn’t really a right or optimum answer to whether you should buy or rent, the decision totally relies on every person’s needs and priorities. Whether you decide to rent or buy, visit OLX where you can find several opportunities in both.