Tips: Should you rent or buy a house?

Written by  //  April 11, 2013  //  Home Decor  //  2 Comments

If you are looking for a new home, you have the option of renting one or buying one. Deciding which one of these you would like to do is sometimes challenging and confusing. They both have advantages and disadvantages and it is my opinion that a decision should always be made after comparing all the advantages and disadvantages. After all, the last thing you want to do is regret your decision when it is too late.

This article aims to mention the main advantages and disadvantages of both renting and buying a home. Hopefully, it should guide you in making your decision.

The first thing you need to determine is whether your move is long term or short term. If you are moving to a new city for a few months to do a course or do a job based assignment, then purchasing a house is not the best idea. However, if you are planning on making a long term commitment to your new home, then buying is definitely the better option. rent or buy a house_1

One of the most important factors you need to consider is budget. You need to see how much your desired home would cost to rent or buy. This will give you an indication as to how much money you need. Buying a home will often involve having to take out a mortgage. Firstly, you need to decide how much money you can afford to put down as a deposit, giving you an indication of how much money you would need to borrow. Once you know this, go online or into your local bank or building society and see how much money you can borrow, and what the repayment costs would be.

Estimate how much you will be spending on monthly bills, and add this to your mortgage repayments/rent and see how much that adds up to. Finally, deduct this number from your monthly income and this should leave you with a figure of how much money you will have left over every month.

If you find that you are not left with a lot of money after having paid your mortgage and bills, then it probably is not the best idea to go for the buying option. However, if the rent is higher than your mortgage repayments, then it may be worth to step on the property ladder. Another thing to remember is that once a house is yours, you are in charge of fixing anything or getting anything repaired. A broken boiler will be replaced by your landlord if you rent, but will have to be replaced at your own expense if you own the house. rent or buy a house_2

Finally, you need to determine whether buying a house is ‘necessary’. Although there is no harm in purchasing a 1 bedroom house, many people prefer to purchase their first home with a partner or a spouse, since it is more family appropriate than an apartment. Also, having two wages come in would be more advantageous.

Another thing you need to do is look into the area where you wish to live. Remember that it is a lot easier to move out of a flat than a house. Purchasing a home is not as simple as it seems. The responsibility is huge and the last thing you want to do is to rush into it to find yourself bankrupt or losing your home, and your credit rating because of it. Always seek advice from friends or family members, some of whom may have been through the home buying stage in their lives already. Either way, make sure that you are one hundred percent sure before you decide on anything. HA8 man and van

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