If you’re considering looking for a new place anytime soon, then you may be wondering whether you should be buying or renting. The thing is, both have good sides and bad sides, so really there isn’t a right or wrong answer. It’s merely a case of what works for you and your circumstances at the moment.
To help you figure things out a bit more easily, and see what’s going to work for you, below are a series of pros and cons for each option.
- Mortgage payments are cheaper: Although buying a house is a big deal, and they certainly don’t come cheap, the payment you make for a mortgage each month is typically a lot less than what you’ll pay in rent. So, if you’re looking at cutting down your monthly expenses, this is one thing to consider.
- It’s an investment: The great thing about buying a house is that, although you’re paying a mortgage each month and are tied to that, you have something you own clear and free at the end.
- More difficult to get: Of course, a mortgage isn’t something that’s just given out to anyone. It’s a process, and you need to be able to prove that you’re in the position to pay it back. You’ll also need to have a good credit score before you’ll be considered for a mortgage.
- You can renovate without permission: One of the other great things about owning your place is that you can renovate whenever you want without getting permission from a landlord. So, for example, if you wanted to change the floors, or get some concrete polishing done on the ones you have, then you’re free to do that.
- Less security: One of the downsides to renting is that, even as a perfect tenant, you still have to remember that you don’t own the place and the landlord can effectively ask you to move at any time.
While they can’t just kick you out, they can give you notice as per your contract, and since you never really know when that can happen, renting leaves you with less security.
- Less paperwork: When you take out a mortgage, there’s a mountain of paperwork to deal with, but with a rental property, all you need to do is usually sign one or two pieces of paper and hand over the cash for the deposit.
- More flexibility: Another great thing about renting is that there is more flexibility. So, whilst your landlord can ask you to move anytime, you can also move whenever you want as well, and all you have to do is give your notice and hand back the keys.
As you can see above, there are definitely pros and cons to each option, so before diving in and deciding on one, it’s a good idea to consider your personal needs and circumstances, including things like how much money you have to spend, and if you’re planning to settle in one place or not.
To read more on topics like this, check out the lifestyle category.