You need to manage your finances efficiently so you won’t end up losing your home due to non- payment but if you’re able to finish your payments, the house is all yours. However, not everyone can actually afford their own home so they settle in renting their place. With this, you’ll have more flexibility with your finances and it’s definitely much cheaper than buying your own home.
Both have different advantages and disadvantages and that’s what we’re going to discuss. We have laid out the pros and cons of both so you’ll better understand the responsibilities the two have. It also aims to help you decide whether renting your own place is better than owning your own home or vice versa.
With this option, you don’t have to prepare a hefty amount of money as your costs are usually divided every month. However, there are also upfront payments that you have settle before or after you immediately move into your rented place.
Usually, landlords or landladies require security deposit as an insurance for any damages you may have incur while staying on their property. Another cost is your first month’s rent and your moving cost. You can opt for hiring movers or ask for your friends’ help.
Once you’re settled in, you will now have recurring payments you need to compensate every month such as monthly rent, pet rent (if you have any), utilities (electricity, water, internet, etc.), and renter’s insurance to protect you against fire, theft and other unexpected disasters. You also need to take into consideration if there’s a place for you to do your own laundry or bring it to your nearest launderette.
The good thing about renting is that you have no obligation if the house you’re renting encounters any problems as it will be shouldered by the landowner. Also, relocation won’t be a hassle especially those who frequently go out of town or move to another city for their work. Most importantly, credit requirements for renting is significantly lower than those who want to purchase their own home.
Of course, down side is already present in renting your place. Every pound that you pay is going to the landlord (unless it’s a rent- to- own property). Even though you rent and pay for more than 50 years of your life, the property will never be yours. Also, if you’re renting a place you have no control on whether your monthly rent will go up or down so you better manage your finance better.
OWNING / PURCHASING
Buying your own home can cost you a lot but if you have properly prepared for it, then the key to your new home is all yours. However, keep in mind that there are a lot of things we need to consider and settle when getting our own home. One of the most important part is the paying of the down payment. Once you have settled this, you can now proceed with the others fees and recurring payments that you need to pay either monthly or bi- weekly.
The advantage of buying your own home is that eventually, this home will be yours. It doesn’t matter whether you spend 20 or 30 years paying off your mortgage as the most important part is it’ll be part of your assets.
After discussing both options, you can now decide whether renting or buying a house is for you. If you want to be properly guided with the decision whether to buy or not, you better consult Colin Bibra Property Management as they can provide you alternative and options that will best fit your finances and needs according to your budget.