Buying or Renting a Home; Which Is Preferable For You?
Everyone has the sense of achievement when a milestone has been reached. For some, it is a promotion, weeding days, transfers, buying a car, making new connections, signing deals, buying a house and so on. While everything is a very good achievement, I will be looking into owning a house, over buying a house.
While owning a home is a great thing, you need to consider a lot of things before owning one. Owning a home can be a very good thing, but would it be the best option for you?
While owning a home is good, sometimes renting a home is better. First, if you are a person who travels a lot, it is important that you do rent a home to buying one. You should weigh your options before buying a home.
In some countries, purchasing a home goes with paying a high fee for agents. Agent charges go as much as 10% in some countries. With a fee of up to 10%, buying a hundred thousand dollars house will mean paying ten thousand dollars as agent fee. This could be a very high amount to pay for some people. In some cases, the agent get paid by both the home owner and the buyer, and while this might look like a very small amount, it can be a significant amount for a down payment when purchasing another home.
Buying home at once in cash isn't something a lot of people are able to do, and thus have to borrow money from the bank in form of mortgage. While you are trying to overcome debt, getting a mortgage isn't a good idea as mortgages are in high amounts but when it comes to renting, it can be very cheap compared to buying a house. Also, in many homes, buying a home isn't the Last payment you make for the home. You will be paying for annual repairs, levies while paying your mortgage at the same time.
Considering the location where the home is to be purchased is another one. If it is cheap to purchase a home in the area where you live compared to your income, then it is a good idea to purchase a home but when the difference is the case, then it is good to look into your options properly.
Buying a home could be a good advise for some people, and it can be a bad one for others. You should consider your options financially before making home decisions.
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The arguments that you bring up make sense to me. But if you look at rel estate as an asset class, I think it almost always good to have some exposure to it in order to diversify your portofolio, wouldnt you agree?
Hi, friend.
You are right in what you mention when you travel a lot it is better to rent than to own, but if you are a stable person it is more profitable to own your own house, since if you are rented you are at risk of being sent to vacate.
greetings friend