Some potential home buyers are often confused by whether to go the property renting or buy route. It is a common problem that affects many young people who have jobs and are eager to start their adult lives. It is something that requires proper self-financial evaluation before making the right decision. Even if we find it difficult to answer the question, it is worth noting that housing is still a worthy investment as it always keeps on appreciating. This is a result of shelter being one of the basic needs of a human.
Two things to consider
The first thing that you should consider before you decide on property renting vs buying is to have a critical analysis of your finances. If you are to buy, will you be able to pay off the full amount at once or will it be in installments? And if it is installments, will you be able to meet your side of the bargain or will you end up defaulting? The second thing you should consider is emotional and personal factors. These are hidden inside you, but they will affect the decision you will make. Here are some factors that you can consider to help decide on property renting or buying.
Your financial status
The state of your finances will tell you if you need to buy or rent property. If you have enough money, you can go ahead and buy the home you want. This implies that you can buy the property at once or you can afford to make several down payments according to the agreement with the seller. Once you have made the decision to buy, you must look at the long term benefit of the property you want to buy. Is it beneficial? Is it worth what you will spend to buy it? If you do not have enough cash, then you should rent as you try to save for your future property investment.
Is it for retirement?
You should also consider if you are buying the property for retirement purpose. If you have what it takes, you can go ahead and buy the home. You will be more at home residing in your own property during your old age.
Is it for investment?
Suppose you are looking for a property with the soul aim of investing. Then it would be important to check if the investment will be worthy and if there will be good returns. If you will be able to recoup the money used, than go ahead and make your purchase.
Is it worth it?
The next important thing you can consider is whether the property will be worth the money you are going to spend. You will need to check if it is in good condition. If it is in need of repairs, that might come out of your pocket, increasing the costs.
It is important for a potential property buyer to make the right decision before deciding whether to buy or rent. The decision you make will be long term and it may affect your pocket positively or negatively.