Deciding between buying versus renting a house is not a simple decision to make, you need to weigh the pros and cons before choosing what’s best for you.
There are financial and non-financial aspects you should keep in mind before arriving at
a decision. Below, I’m going to ask you some questions to help you solve this dilemma.
● What is your budget?
If you’re going to spend all your savings to buy a house, reconsider this choice. You
don’t want to end up with zero money in your bank account, that’s surely not the
smartest thing to do. However, if you do have enough money, then buying a house is a
good investment. Eventually, you’ll have a home which is a good step moving forward in
your life.
● Are you in debt?
If you’re in debt & want to pay it off, you should think of renting because it’s much more
affordable to spend small sums of money at the end of every month rather than a hefty
mortgage. On top of that, if you choose to rent a not-so-expensive apartment, you’ll be
able to start saving money to pay off your debt then eventually towards buying a house.
● Do you prefer traveling or settling down?
If you’re single, or your job demands moving a lot, then renting is a better idea for you
because you won’t be bound to one place. On the contrary, if you have a family and
plan to stay in one place, want privacy, or you have certain plans for your children, then
buying is the best thing to do.
● Are you ready for home maintenance?
If you own a house, you need to be prepared for home repairs and maintenance. So if
your career is stable, or you have an emergency fund that’s helpful because you’ll be
paying for your own house eventually. But if you don’t have enough money to handle
mortgages, go ahead and rent a house, it’s cheaper and you won’t be as financially
restricted.
At the end of the day, think of your readiness, residence affordability, and future plans.
Ask yourself if you would like flexibility or stability, and don’t forget that with every
choice comes good and bad aspects.
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