Buying vs Renting: What Are the Pros and Cons
Buying a property is not as easy as it used to be. Besides the more stringent requirements to access home loans, property prices have continuously risen for the past few years. This makes it hard to decide whether it’s high time to buy your own home or continue renting. If you haven’t made up your mind yet, below are some pros and cons of renting and buying, which hopefully can help you decide.
Renting a home will leave your savings untouched, meaning you can use them for other things. You don’t have to allocate them to pay for the deposit and other costs related to buying a new property. Instead, you can use them to invest in something which will give you a better rate of return. Maybe you’re at a point in your life where you want to travel and enjoy yourself first, instead of saving every month to pay for a mortgage.
There has been a steady rise in rental rates for the past few years due to the increase in property prices and inflation. Depending on the property location, mortgage payments may seem heftier at the start, but over time, the interest that you’ll be paying will be reduced as you slowly pay for the principal loan. Come retirement time, there will be no more need to worry about monthly rent since you will probably have paid off your mortgage by then.
Buying your own home
Buying one of the many flats for sale in Brentwood instead of renting gives you a sense of security knowing that there’s no need to renew tenancy agreements or the risk of being kicked out unexpectedly. As a tenant, you won’t have too much say in the lease terms nor will you have the freedom to make changes to the property. But being a homeowner, you can renovate as much as you can and decorate however you please.
As a property owner, you can expect the value to increase over time. It’s an excellent investment to make because once the pricing reaches its peak, you can look into putting it up for sale.
The fees and interest you pay during the life of the loan shouldn’t be taken lightly. It’s a significant amount that, when you think about it, you could use for investment or something else. You could even use it to study or travel somewhere.
There is also no assurance that you will get the increase in property value that you expected when you invested in it.
Comparing the pros and cons of buying and renting isn’t an easy task. There are a lot of factors that you need to consider which include your financial stability, lifestyle choice, needs of the family, and your investment goals in the near future. If you’re unsure of where to start, talk to an expert to get a good idea of what to do. This way, it’s easy to make an informed decision on whether you’ll continue renting and invest your savings elsewhere or pay a deposit for your own home.
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