Renting vs. Buying – which is right for you?

For most, owning a home is a dream. Settling down with a family in your very own building. But is it the better option? Or is renting just a good?

Well, the honest answer is I don’t know. No one does. Everyone has different needs and requirements and your circumstances will dictate which is right for you.

I can however make the decision a little easier on you guys. We’ve put together some benefits of renting and buying to help you decide which the better option is for you.

Renting

Renting is the popular choice for many young people who are finding their feet. It’s perfect for someone who doesn’t know what’s next in their life, and could have to move quickly.

Flexibility – Buying a property means that you’re committing to one area. You’re investing your foreseeable future in that one location.

Renting however means that you can up and move whenever required. Perhaps your finances are a little strained or you need to relocate closer to your family. Renting is the most flexible way to live.

Initial Outlay – Renting a property means that you don’t have to fork out as much money upfront. It’s probably going to be a month’s rent, a deposit and well... that’s probably it. Buying however means that you’ll have to save for quite a long time. Not good when you need somewhere to live fast.

Repair costs – If you don’t own the property, then the boiler breaking on its own isn’t your problem. This is something the landlord will need to deal with. Unless you break it yourself. If that’s the case then get your wallet out.

Less of a risk – As I said earlier, buying is tying yourself down to one area and one property. If you lose your job or fall ill for example, you can’t leave.

Buying

If you’re a family looking to settle down then this will probably be the option that you’re considering.

Stability – Everyone who is starting a family needs stability in their life. So, if you buy you’re committing to one area. This means that you’ll be able to get to know the local neighbourhood, allow your kids to settle into school and fall into a solid routine.

Live by your own rules – As I brought up earlier, renting means that your landlord repairs any damage. But they also control the property. If you purchase it yourself you can paint the walls, decorate the bathroom and knock down the garage all you want. It’s yours!

Cost – One major downfall of renting is that you’re consistently paying for something that you’ll never own. And, in some cases, your rent couldincrease. If however you have mortgage you’re paying money towards your future. Plus, the price of your mortgage will only ever decrease.

Both of these have their own obvious benefits. For the young, ladder-climbing individual, renting is the way forward. For families, buying is probably the better option.

Asses your circumstances and consider the above.