The decision on whether to buy or to rent property is one that many people make daily, it is a choice that should not be taken lightly. Before taking the step of buying a house, it is critical to consider whether homeownership is right for you or if you will be better off renting a place for a specific period of time.
First and foremost to rent a house means, to obtain possession of and use of a place or article in exchange for rent; a fixed periodical payment made by the tenant to the landlord (owner of the property). Buying a property on the other hand is to become the outright owner of said property or article after a lump payment. However, sometimes you can also buy a house with a mortgage which you will be required to pay back.
Rent vs. Buy?
When looking for a new place to live, one of the predominant questions you have to ask yourself is one that will help drive the rest of your decision-making process. Should you rent or buy a place?
In general, the decision on whether to rent or buy is better for you largely depends on your specific situation, your financial situation, and your family situation and there are pros and cons to whichever you decide. Luckily for you, you can both rent and buy property from Demaxon.
Here are some basic questions to consider when thinking about buying :
- How long do you plan to stay there? If you expect to relocate in just a couple of years, renting is likely a better option.
- How big a home can you afford? If you can’t afford a home large enough to fit your family in a few years, it may be worth it to rent while you save a bit more.
- What’s on the market? If you can’t find a home you like, it’s not worth tying yourself to something you’re unhappy with.
- What is the state of the housing market?
If you’re unsure, here are the pros and cons of whatever decision you decide to take. Firstly, let’s take a look at the advantages of renting a property; There are copious benefits when it comes to renting property, first and foremost, when renting a property, you can make a short term decision, you can rent a place for months or for years and depending on your agreement with your landlord, you can choose to extend when this period has come to an end. This offers you a lot more flexibility you will not have if you were to buy property. Speaking of flexibility, it is also a lot easier for you to pack your things and move out at a moment’s notice in a rented property than to sell a property that was bought. Renting a property can also be advantageous because of the maintenance costs. In rented property maintenance is often handled by the landlord as these costs tend to be included in your rent/service charge. Costs such as plumbing, repair work, and sometimes even cleaning. This can save time and money. Another benefit of renting a place is the fact that it is possible to rent a place that is already fully furnished. Lastly, when renting a place, the volatility of the housing market and its price movements is not something you have to worry about as much.
However, as we know, there are two sides to every coin and renting a property will also come with some cons. Firstly, although the rent set upon agreeing is fixed, it is only fixed for that particular point in time, and therefore the landlord reserves the right to increase your rent once your lease is up. Secondly, with a rented place you do not have as much freedom to redecorate as you will be handling the property back over, therefore in order to change things like the wall paint, furniture, or make modifications to the space you will be required to consult your landlord. Thirdly, because your landlord is the one who will manage the maintenance, whilst this might seem advantageous; you are in less control of this meaning repairs could possibly take longer than you would like or even not be performed to your own standards. A fourth reason some people would rather not rent a property is that there is the risk your landlord decides to sell the property and as a result forcing you to move or create a new arrangement with a new landlord which can go either way. Lastly, there is the age-old struggle between renters and landlords regarding the return of any deposits made.
On the other hand, we also have our pros and cons of buying your own house. Owning your own property provides you with a certain level of security you do not get from renting. You know the property is yours and a landlord is not coming to uproot you at any point, you are the landlord. When you own a place you have free will to design and decorate the interior of the place however you desire without seeking permission, however with exterior renovations you may still have to consult the neighborhood/estate management. With an owned place the issues raised with maintenance work are no longer in existence, you are in complete control of the maintenance work, when it takes place and how it is performed. The most key benefit of owning a property is that as the property value rises, you will be making a profit if you do decide to sell. For this reason, many people see buying and owning property more of an investment than just a purchase.
Just like renting property, buying also comes with its own cons. Buying is most likely going to be the more expensive option. When buying you are required to pay a large sum upfront before being handed the property, this could mean having to borrow from the bank. Many people can not afford this. When you own your property, you and you alone are responsible for whatever maintenance work will need to take place, these are additional costs those renting do not have to incur. Owning property simply requires a lot more responsibility. Whilst owning property can be seen as an investment, the housing market can be sluggish. It can take months to sell a property and when you do it is possible for the value of your property to have decreased and you may be forced to sell at a loss.
Whilst renting is considered the cheaper option, according to The Guardian newspaper, “renting property is getting more and more expensive in Southwestern cities and professionals and young families are struggling to keep up with exorbitant rent demands by landlords’ ”. With the current payment structure, landlords are allowed to collect rent up to 12 months in advance and in some cases even 2 years in advance. This is not something many people can afford.
In conclusion, deciding whether to buy or to rent a property is a big decision and there are various factors that need to be considered before making the leap. However, the main factor you should prioritise is your finances. You should “cut your coat according to your size” and prioritise you and your family’s comfort which works best for your lifestyle.
