Buying A Home Or Renting: 4 Questions To Help You Make Your Decision
July 15, 2021
Should you buy a home or continue living in a rented property?
There’s no one size fits all answer to this question since everyone’s situation is different. On one hand, renting might seem like the more affordable option but on the flip side, you will never have a place to call your own. Similarly, owning a home is the first step towards stability in life, but it will also bring with it a lot of responsibility and liability.
There are several pros and cons related to both of these options.
If you are unsure about whether to buy a home or continue living in a rental home, then this blog is for you. Here, we will share 4 questions that will help you choose between the two.
Let’s take a look.
Should You Buy A Home Or Rent One
1) Can you afford to buy a house?
This has to be the first question you ask yourself.
It’s easy to think ‘I want to buy a home’, but there are many other costs involved in buying a property than just paying monthly mortgages.
From the initial down payment to property taxes to monthly maintenance costs and utilities, if your financial status can’t cover all of the expenses, then there’s no point in thinking about buying a home. However, if you have the financial capability to afford all of this, then it may be the right time to become a homeowner.
2) Do you plan to put down roots?
Every person craves stability and to put down roots in one place at a certain stage in their life.
Now, you need to ask yourself whether you have reached that stage or not. Are you ready to settle down in one place or do you still crave flexibility?
If you are ready to live in one home for 5 years or more, then you should seriously consider buying a house. Not only will it be a good move financially, but also for your personal life as well.
You can add personal touches to your house to make it feel like your dream home.
3) Have you assessed the pros and cons of both options?
Both buying a home and renting one comes with their pros and cons.
For instance, buying a home seems like the best way to build equity. Whereas renting gives you more flexibility.
Renting a home seems like a great choice for someone who is focused on his career and has to travel a lot. On the flip side, buying a home is the perfect choice for someone who has just got married and is looking to settle down and start a family life.
No one can answer these questions for you. You need to consider your personal and professional circumstances, and then decide for yourself.
Here, we have created a simple list that explains the pros and cons of both of these options, which might help you decide the which one’s better for you.:
Owning A Home
Pros
- Great long-term investment
- Can build equity
- Tax benefits
- Stability in life
Cons
- High upfront costs
- Less mobility
Renting
Pros
- Flexibility
- No need to worry about repair or maintenance costs
- Fixed monthly expenses
Cons
- You are not building any equity
- May face unpredictable rent increase
4) Are you ready to do the hard work?
Lastly, can you put in the time and effort to search for your dream home?
Searching for a home is not just about going to the nearest real estate agent and finding the perfect home. It requires a lot of research, knowledge of the market, and careful assessment of your requirements.
Here’s one of our recent posts that might help you understand this a lot better: Four D’s of Home Buying Explained.
However, if you believe doing all of this is just not meant for you, then the best thing for you is to continue living in a rented property.
Final Thoughts
Buying a home is a big decision. It can be a really smart idea to buy one if you have reached a certain stage in your life where you:
- Have good, stable income
- Have made enough savings for the down payment
- Can afford monthly expenses (other than mortgage payments)
- Ready to put down roots
Even if one of these 4 things don’t apply to you, then you should consider not buying a home for now and continue living the way you are i.e. in a rented place.
You’ll have to decide for yourself.
All the best!
If you want to buy a home, without worrying about the hassle that comes with searching and negotiating for it, then get in touch with a Negotiator Recognized Partner or an NRP.