To buy or to rent is one of the most crucial decisions when entering the property market. There are pros and cons to both, which can be difficult to comprehend. We name the most important aspects, in order to make it easier for you to decide which suits you best.

Q: What are the advantages of renting?

A: No big down payment – To take a lease, you do not need to save a lot of money. The amount of money you will need upfront is significantly less – a deposit is often needed but this is less when you are renting than buying, and in most cases you get the money back when your lease runs out.

Flexibility – If settling down somewhere permanently is not what you are looking for, then renting is probably better for you. Renting will give you the freedom to relocate before or after the lease expiration. A house or a flat is not liquid asset, selling takes time and patience and will make it difficult for you to move on elsewhere.

Lower cost – Owning a house can mean high maintenance costs. Repairing and keeping amenities running will be your sole responsibility. When you rent, landlords and house owners tend to these matters, especially any larger repairs. Also, no need to worry about property taxes, mortgage payments and so on.

Enjoy amenities – Renting a complex in luxury communities may include fitness centers, a swimming pool, event rooms, a barbecue, gated access and playgrounds. These benefits are expensive if you were to install them in your own purchased house, and more expensive to upkeep.

Q: What are the advantages of buying?

Customize your space – You are free to modify, extend or redo the décor as you please. Nothing will stop you from knocking down a wall to make a room larger.

Security – A house is a physical asset that you can show; a roof over your head that you and your family can always count on. For any reason and with little notice, landlords may raise the rent, delay repairs, or even evict you. Having a house gives you a sense of control and security that many renters do not have.

Cheaper to buy – The total rent you will pay in 20 years is more than what you will need to buy a house. Rents are likely to continually increase, whereas a fixed mortgage can never go up even if inflation does. Since property value generally increases over a period of time, by the time your loan is paid in full, your house value will be more than what you paid originally.

Investment aspect – As you pay off your mortgage, you will have consequently increased your equity. The equity stored can come in handy. Banks will give you more loans against your house than you would get if you were a renter. In turn, you can invest this money on another house or use it to meet other needs.

Furthermore, owning a property allows you to lease it out should you decide to travel or change location.

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