To buy or to rent? There are no rules here, as what you really need is make a choice. You need to understand that buying or renting can either increase or drain your expenses and resources, and therefore you need to make a good choice.
There are so many available home deals. Home developers are heavily around in the market and most are encouraging you to own a home. The promise of mortgages based on what you can afford and in so many years is making you believe it’s time to own a home. However, what’s not being emphasized is the responsibilities of /buying a home such as maintaining it, paying all the real estate taxes and most of all, the upkeeps.
So, do all of these make renting off a place a better option? Here’s a sound answer to this intriguing question.
First, having your own place doesn’t mean buying a home. You can definitely have a place to call home by renting. Financial advisers simply suggest careful calculating of your finances and income, and setting aside savings and buying when you are sure that you can already afford a house. Renting is an alternative until you have saved enough and you have secured a sustainable income stream that allows you to pay for all of your living expenses and for a home mortgage.
Another thing is when buying a home subject to mortgage, you are likely to borrow to buy your home and this may drag your credit and ability to other loans like car and tuitions. On financial calculation, a home mortgage falls as debt while a home rent is an expense and both are treated different on financial ratio. Houses also take a lot of money and most of the time, improvements aren’t all deductible. When renting, expenses like replacements for air conditioning unit, kitchen flooring, washer or dryers are for the landlords and not for the renters.
Still, there’s no doubt that buying a home is a good investment as a home mortgage is a good debt. The rule of the thumb is to buy only what and when you can already afford. Governments are encouraging homeowners with Housing Regulations on lowest interest rates and getting a good deal is made easier. Buying property to rent out is also a good business however this needs to be carefully studied. There are the vacancy rates, maintenance costs and attendant taxes that needs factoring over.
Buying or renting is two different options where rules and economics are the key factors in making a decision. One option could be better for some but not for all. So. it’s best to make research and have full understanding before making the big leap and not to have bits of regret later.