Buy or rent a place
Published on Tuesday, 08 May 2012
Are you one of those people who still can't decide whether to buy a place or continue renting? Both ways have their benefits and this is why it is hard for many people to decide what to do.
One of the reasons people prefer renting to buying is the price. Renting is much cheaper and one doesn't have to pay a monthly mortgage. A disadvantage is that rent can change with time and there is nothing you can do about it, whereas when you own a place your mortgage payment is fixed and doesn't change. When you apply for a loan to buy a place, there is a lot of paperwork to do, so you need to be aware of the terms and conditions you are signing. Most contracts will span over 30 years. Buying a home for many people is a way of investment. With the fluctuations in the market you can expect appreciation in prices. When you rent any such appreciation doesn't benefit you, but your landlord. Moreover, any investment you do in the rented place doesn't get back to you. Still, there are people who just cannot afford buying and their only solution is renting. However, renting for a long period ends up more costly than buying and then paying off your debt in reasonable monthly dues. Renting is not so bad when you have a clear goal. Renting in order to save money to buy a home is what most people do. This also allows you to shop for the things you want for your future house one by one without spending a fortune at once. Buying a house does cost a fortune these days and especially if you want a family home big enough for children, with a good location. Houses are costly but are definitely worth the money. Owning property is a lifetime investment which your children and grandchildren can inherit. Having your own place and decorating it the way that it feels like home and reflects your taste gives a great feeling. It is not just buying a house, though; you need to think of all the costs around moving, taxes, insurance and so on. When you rent a place most of these issues are your landlord's responsibility. Any maintenance costs and repairs are included in the monthly pay, so even if you don't have to do things yourself you are getting charged for them. This is why renting costs are getting higher and higher these days. Another thing you cannot control when renting is its location - sometimes you have only few choices and usually it comes down to the cheaper one. If you are not allowed to do renovations in the place you will most probably spend a lot of time living in a place which just doesn't fit you. That's why owning a house is always the wiser thing to do, even if it doesn't look like that at a certain moment in your life. However, it is the security which it brings that you will love and cherish. The thought that you can do anything with the place without asking permission, that you can renovate it and one day sell it for a much bigger price that you have paid, the calm assurance that nobody can kick you out. It is a serious investment, but it will secure your happiness for the rest of your life. Talk to people you trust who have knowledge on real estate and start looking even if you can't afford it yet - having a clear idea of the area, the size and the style of your dream home will prove to be useful when you can.
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