To Rent or to Buy?
There comes a point in life when we think about moving out. Maybe you want to move out of your parent’s home to a more prospective location with more opportunities and job security. Maybe you want to move away from family members to get some peace and quiet. Perhaps you just want to move out so that you get some privacy. Or maybe you want to start a family with your partner and children by moving into a larger home.
Whatever your reason for moving, the ultimate decision you have to make is whether you want to buy a home and invest in a mortgage, or if you want to rent a home. To help you make that decision, here are some pros and cons that separate the two.
Do you want to invest in a mortgage?
Moving into your first apartment after you’ve paid your deposit feels fantastic. You’re going to have a furnished home (hopefully) and you’ll feel refreshed and new. When you move into your first home, however, you’ll get a bittersweet feeling; although you’ve just invested in a new house to call home, it’s probably going to be the same few walls you’ll see until you retire. This is what it means to invest in a mortgage. It’s life-long, not temporary, and unless you have a ludicrous amount of money, you’re going to be spending a considerable number of years paying it off.
Finding property for rent is the complete opposite. You can pick somewhere new to live every year if you wanted, and you have the freedom to move around and choose a new location if you get bored of the old one. It’s a short-term investment that doesn’t tie you down. The downside to this is that you will end up paying more money to live in a home than if you just owned a home, but this only starts happening after around a decade. However, if you can afford it then it might be worth the extra cost.
Do you want to own or borrow?
Renting vs owning is essentially asking if you want to borrow or own a home. If you’re happy living in a place that you can’t really call home because it’s technically not yours, then you’ll be fine with renting. This means that you often need permission from the landlord if you want to make renovations to the property, and if you increase the number of people living at the property then you’re required by law to notify your landlord. Your landlord might also have strict rules regarding pets and family sizes. However, until you find a landlord with terms that suit you, you have the flexibility of moving around as often as you’d like.
If you own a home, you can do whatever you want with it. You can make renovations, add extensions, invite as many people as you want, and do whatever you like. However, although you have freedom to do whatever you like to the home itself, you don’t have much freedom when it comes to your general location. Owning a home is a huge investment and for most people, that means you’ll be living in that home for life.