To Rent, or not to Rent: Which is right for you?
Posted on 10/12/2013
There comes a time when you have to consider moving out. Let’s say you’ve got a job with a decent wage and you feel like it’s time to move on. But you’ve got to ask yourself, should you take the plunge and buy a home, or take the less risky alternative and rent instead. There’s upsides to both. By pitting them head to head, I’ll do my best to outline the advantages of both sides.
To Rent
Let’s be honest here, in most cases it’s cheaper to rent than it is to buy. The main reason being is that you won’t have to take out a loan so you can afford the deposit. As long as you have a steady wage it’s a lot easier to keep up with the rent rather than being confined by a mortgage. Any contract you sign to become a tenant can usually be broken after six months or so, so you can freely choose where to live without being tied down.
And, in that vein, it’s less risky too. If house prices drop in your area, it won’t be any concern to you – your rent is dictated by your contract, and if it gets too high as a result of the market you always have the option of moving away. Add less maintenance and upkeep costs to the financial security and it’s pretty obvious why you may choose to rent rather than buy.
Not to Rent
On the other hand, while buying is more expensive than renting, by putting your money into a property, you are making an investment rather than just paying for a service. This, at the end of the day will be your home. With a new home, comes a new community. If you’re the social able type, buying a house and staying for a time will give you access to plenty of new friends and neighbours, rather than flitting to place to place as the rent changes.
And, while buying a home does come with potential risk, it also comes with high potential for reward. If you buy at the right time and house prices go up rather than stagnate, you’ll have access to a sizeable return that will stand you in good stead. There’s more upkeep costs and potential stress, but there’s also more freedom. You own the house, so you can furnish and decorate it to your hearts content rather than being bogged down with rules and restrictions. Even though some tenants will allow you to redecorate, you’ll never have as much freedom as in your own home.
Analysis
So, which to choose? It certainly depends on your circumstances as well as personal preference. For example, if you plan to live alone, buying a house by yourself will be rather difficult (unless you’re flush with cash). If you’re building a family up, then renting a small flat is just impractical. The list goes on. For first time buyers, however? I’ll summarize; Renting is easier, and buying is more rewarding.
It’s your choice!
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