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.