Wednesday, September 27, 2017

Should You Buy Or Rent Your Home?

If you’re planning to move house, one of the most important decisions you have to make is whether you want to buy or rent your new home. Both options have their advantages and drawbacks, so you have to make sure that you properly think through your options before making any solid decisions. Here are some pros and cons for you to consider:

Freedom & Flexibility
If you own your home, you have almost total control over any renovations or improvements that you want to make, which could potentially increase the value of your home by a large amount. As well as this, once you’ve paid off your home, you are safe in the knowledge that you will always have somewhere to live. Also, by the time you want to pass your property to any of your family members, you may transfer it through a well-made quitclaim deed for an easier process.
You have much less freedom when you choose to rent a home. For example, your landlord could decide that you aren’t allowed to decorate or have pets. Some landlords also don’t want children living in their property, which could cause issues if you and your partner decide that you want to start a family. However, renting a home is often much more flexible than owning one, which is perfect if you like to move around a lot.
What Can You Afford?
The difference in cost between renting a home and paying a mortgage is huge. Paying for a mortgage is a big deal, and if you can’t afford to make repayments, then you are at risk of getting your home repossessed. When you buy a home, you will also have to pay a deposit, survey costs, stamp duty, solicitor’s fees, removal costs, and your gas, electric, and water every month. This might simply be too much for you to afford, so you have to think through your finances.

Renting a home is often seen as the much cheaper option. In comparison to your mortgage, it certainly is less money, but it’s money that you're paying just to live in a property; You don’t actually have any rights over it. However, you will find that you have more options of where to live when looking to rent a home. For example, the price of buying luxury apartments near you may be out of your price range, but you may be able to afford to rent one.

Investment Or Savings
Buying a house is an investment which you could potentially sell for a profit once you’ve paid off your mortgage. However, there is always a chance that the value of your home could decrease, which could mean that you end up losing money on any future sales. As well as this, depending on the state of your home, its location, and other factors, you may find it difficult to sell your home, so you have to be prepared for this possibility.
Instead, you could consider saving the money that you would have spent on your mortgage for something else, such as a holiday, or a new car.

The decision to buy or rent your home is a big one, so make sure you put plenty of thought and research into it.

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