Real estate has been a solid financial investment – especially long term. Buying or not buying a place called home is the question in the minds of many people when they reach a certain point in life. If you have a good job, which is installed in one place and can see himself staying there for the foreseeable future, it would be more beneficial for a mortgage or continue renting?
To a large extent, the answer often depends on the person, you can have different values than conventional home purchase route. One of the reasons for continuing to rent is the fact that there is more freedom as a tenant, and was not tied to a mortgage contract with six figures fear written on it.
However, pay rent means that technically the owner is doing better, instead of contributing to their own investment as it would with a mortgage. Many refer to rent as throwing money down the drain, however, initially renting can be much cheaper to buy.
Owning – You’ll pay maintenance and upkeep. You’ll pay property tax, mortgage, insurance, and various and sundry other things. Historically real estate increases in value… given time … potentially doubling in value over a ten year span of time or so…. assuming you buy ‘right’. Time your purchase so as to be toward the bottom of the market swing Look to buy in a decent area that holds it’s value or an up and coming area with growth potential. Your tax advisor will guide you as to how to take advantages of tax write-offs. Always rely on an experienced local Realtor! Buy right, and the money you put into your home or condo should in time equate to additional equity.
As a tenant there are no hidden costs and find out where you stand – just pay the rent each month and regular, plus the odd bit of furniture as an investment, generally all that is paid for the roof over your head.
Shopping comes with additional costs, some lenders charge fees agreement, ahead of several other costs to be paid, such as stamp duty and surveys. These are added and you may find the purchase price if not careful and forget to budget for all eventualities.
However, there is nothing like owning your own home. If the initial cost may be more than renting, but once these are out of the way mortgage payments are often similar – if not cheaper – to rent would be on the same property. Moreover, as a homeowner can relax and do what you like in your own home – have a dog, if smoke or redecorate, among other things. As a tenant, you must comply with its owner, and may be some restrictions on its lease.
One of the advantages of renting over buying is the cost of home repairs. If the water pipe breaks, or leaks while renting a property, for the owner to pay the repair bill, whereas if this happens to you once you’ve taken a mortgage, the payment of reparations becomes her own risk.
But if you are seeking a long term home, buying may be the best option, because the rent can be unreliable due to the risk of eviction and short leases. Most private landlords only offer six months rolling lease contracts are often subject to a satisfactory inspection at the time of renewal of the lease, while local councils and housing association tenancies are usually long leases period, providing, of course, the tenant maintains the rent.
There are pros and cons of both renting and buying a property, and the final decision about which route is best depends on your personal circumstances and if you look long-term security or not. It is also taking into account the market value of the home at the time that may affect your decision if house prices are unstable.