You might have heard that buying property is always the best option for your finances, but is this true?
As it turns out, the answer is no or at least, that’s not necessarily going to be the case. Instead, it’s important to explore the features of buying and renting. This will then help you discover which best suits your needs.
That’s why we’ve provided this helpful comparison to ensure that you can make the right decision.
Is Buying The Right Option?
When you buy a home, the biggest benefit you’ll receive is stability. You won’t have to worry about paying the rent each month and theoretically, you’ll always have a place to live. Although you will need to keep on top of the mortgage payments and depending on the value of the property, these can be quite large.
The other big benefit to consider is the long-term investment that you get. With a home that you own, you can look forward to growing the value and eventually selling in the future. Hopefully, when you do this, you’ll see at a profit with a great gain in value. Experts often say that property is one of the most secure forms of investment that you can explore. So, it could definitely be worth thinking about in this respect.
You’ll also have a lot more freedom with modifications and changes to your home, that you can’t access when renting. For instance, when you buy a property, you can remodel, renovate and even add to the size of the property. You can install new features whereas to do this in rented accommodation, you’ll need permission from the landlord.
However, buying property will leave you expensive bills to pay if anything goes wrong. For instance, if the heating system fails you at any point, you’ll need to cover the repair cost. This bill can easily exceed ten thousand. You’ll also need to be prepared for a long-term financial commitment that will impact your finances for years.
How About Renting?
In contrast, renting can be a short-term financial commitment. If you view apartment listings on apartment guide and similar sites, you will discover that you can search for a rental based on the contract that you want. So, if you want a flexible monthly contract where you can move out with one month of notice, then this can be arranged.
As for the big bills for maintenance and repairs, as long as you are not responsible for the damage, you won’t have to cover the cost. This is great news if you’re renting a larger property with advanced facilities such as a full-size swimming pool. That also means you can get luxurious options without the maintenance costs you’d typically need to pay.
Renting will not provide the same stability as a purchased home and a landlord can remove you, providing a notification within the time limit agreed upon through the contract. That said, assuming you pay your rent on time and don’t cause issues this is unlikely to be a problem.
We hope this helps you determine which property choice is right for your needs.
Are you considering renting an apartment or buying a house?