Thank you for reading this blog. I will walk you through my thought-processes and the actions that led me to choose between renting and buying. Of course, you first need to realize that it is always a good time to buy property. However, renting is usually better if you are not looking to stay put and settle down in one place for at least 5-10 years.
Where Renting Makes Sense
If you are still uncertain about where life is going to take you next – a change of scenery, a relationship or a job – renting beats buying hands down. It will cost you less in terms of money, effort and time to break a rental lease than to rent out your home to another person or to sell it altogether. In the same way, since your landlord is responsible for repairs and maintenance of the property, you have less to worry about.
Where Buying Makes Sense
Buying a home, on the other hand, can actually turn out to be a great investment. However, it is a lousy decision depending on how the market is when you buy, and when you sell. Anyway, if you plan strategically and the market goes in your favor, it makes more sense to buy a home than to rent one.
Personally, I was advised by investments manager that it would suit me well to buy if, and only if, I planned to stay in the home for more than 5 years. This way, I would have enough time to recoup most of the upfront costs required to secure a mortgage and the back – end costs for selling and paying the property agent commissions that are atypical in such situations.
My advice to you, therefore, is that you need to understand yourself well before you make the decision to buy or to continue renting. Either way, you can rest assured that it is always a great time to buy your own home.
A couple of years ago, when I was on my second job and making a tidy sum every month, I decided to move out of my parents’ house and into a small flat in Leeds. Renting the place was great fun until I met a friend who was making less money than me but who had already paid the deposit on her first house. Talking to her made me reconsider my life choices and I decided to look into home ownership as a viable future plan for myself.
I am sure that you are probably at a similar crossroads now. You have been comfortable in your current home. However, the problem is that you do not own it – not really. Losing your job could lead to your eviction. This is also the case if you are unable to continue paying the rent.
However, before you get on the property ladder, consider the following. I will help you think about everything that comes with home ownership so you can make a smarter decision whether to continue renting or move into your own home.
When I decided to buy my first home, I had to pay various fees. I discovered that owning a home does come with a couple of expenses that I had already been informed of by my friend. As a renter, I did not have to pay these fees directly. These fees cover maintenance of the home, renovations, homeowner’s insurance, monthly utilities, and monthly common fees, among others.
However, renting also comes with its own costs. Apart from the rent, I also had to pay brokers. Additionally, there was also the opportunity cost on my security deposit. Although these expenses had a negligible impact on my financial situation, I decided that it was time for me to join the property market as an owner. This is why I opted to buy instead of renting.
I wanted to blog about the accommodation options we all have: to buy or to rent. We will also talk about the benefits of each option. Hopefully, after going through the following blog posts, you should be able to make a decision about whether to rent or to buy.
The choice between renting a home and buying one rank among the biggest financial decisions you will make. However, you have to consider the fact that the costs of buying a home are more complicated than those that come with renting. This is why most people, including me, have a hard time telling which of the two provides the best deal.
- Home Price
The first thing I considered, and you should do, was the prices of the homes I viewed. Although this is an important factor, however, it is not the only one. I used mortgage calculators to estimate the values before I made my final decision on whether to continue renting or to buy and researched Leeds conveyancing solicitors for prices to take care of the legal side of things in my area.
- Time Factor
Of course, I also thought about how long I was going to stay in the homes I viewed when I was making my home purchase/rental decision. As I did this, I came upon the realization that buying is actually the better option if you are thinking of staying in one place over the long term. This is because the upfront fees will be spread out over and reduced over many years.
Last but not least, I considered what the future held for me and for my family. In the process, I considered how much stock prices, rents and home prices would change in the future. These things are difficult to predict. However, I judged correctly.
To conclude, therefore, it would be financially sound to continue renting until I found property that I could see myself spending my twilight years. Once I got hold of my dream home, I immediately booked it and started my journey towards home ownership.