Should you rent or buy your Home

Should you rent or buy your Home

 

Considering whether to buy or rent the place you call home is a major life decision, with a number of considerations that need to be made when doing so.

 

Whilst both options have their merits, there are of course certain disadvantages, and it’s important to be well informed when deciding. A local real estate agent should have a list of properties for sale and properties for rent, and ultimately you have to decide what to do in your unique situation.
Below we’ve compiled a list of the major pros and cons for both renting and buying, to provide you with a better platform to see which best suits you.

 

 

Renting:


Pros:

  • Renting is more flexible and requires no long-term commitment.
  • There is the possibility of living in a more affluent area than which you could afford to buy.
  • The only insurance required will be to cover the contents of the home.
  • As the tenant you are not responsible for upgrades or maintenance on the property.


Cons:

  • Being bound by the rules of the lease agreement, means you have no freedom to renovate the property, having to first consult the homeowner.
  • Having to deal with a third party rental agent as an intermediary between yourself and the homeowner can lead to miscommunication and frustration.
  • Renting offers no return on investment for the tenant; you are basically paying off the homeowner’s home loan.
  • You have no control over the rental fluctuations which are influenced by inflation.
  • There will always be uncertainty, with no guarantee that a lease will be renewed when it expires.


Buying:


Pros:

  • You have the freedom to renovate or change your property as you wish.
  • Owning a property means building equity, as the property value will increase, giving you a return on investment.
  • It offers security and peace of mind in your place of residence.
  • There is the option of buying to rent, allowing you to generate income from your property.
  • Possible tax reductions related to owning a home.


Cons:

  • A home means you are stuck in a singular place, allowing for less flexibility.
  • There is a risk of prices fluctuating and not being able to profit off of the resale.
  • There are additional costs involved in owning a home, such as rates, taxes and insurance.

At the end of the day the decision whether to rent or buy depends on your needs and capabilities. However, when all the pros and cons are taken into consideration, it’s quite clear that owning a home allows for a far more stable investment, as well as the peace of mind and pride that comes with owning your own home.

Article from Just Property Group 

1st Feb 2016