Should you buy or rent?

By Alex on Friday, Nov 12, 2021

One of the most fundamental questions in every person’s life that reflects on their financial wellbeing is whether they should buy or rent real estate. Let’s look into a few things that you might want to consider when making your own decision.

Flexibility

How important is it to you to be able to change your place of residence whenever you decide? With renting you will still have this liberty. You also won’t have to worry about the maintenance of your place – your landlord will be taking of that for you!

Building long-term wealth

If decide to go for your own place, you’re making an investment. After paying off your mortgage you place will still retain some of its original value and may even go up in price – depending on location and the general state of the local market, you could potentially sell the property at higher price some time on the future.

A psychological sense of stability

A sense of stability is something a lot of people crave in their life, and owning a home will give you that. It’s easier to make plans for your future, knowing where your home will be 5 years from now. You’re also protected from your rent going up or from having urgently look for a new place because the landlord decided he no longer wants to rent it out to you.

Tax reasons

Depending on your region you might be eligible to tax benefits if you’re paying a mortgage. In some countries it’s the opposite – you have to pay a special tax if you’re a home owner. Find out what taxes or benefits you’ll get in your country if you become a homeowner, it will help you make a decision.

Your ability to make payments in the future

One thing that can be easily overlooked is whether you will be able to make your mortgage payments 5, 10, 15 years from now. It’s entirely possible to overshoot and take on a mortgage that’s very high – life can be unpredictable and you may end up having to pay hefty sums on a mortgage you can no longer afford and you might become its hostage.

How does either option make you feel

The are pros and cons to both options, but there is no one-size-fits-all answer. Whether you see yourself raising children in a permanent residence or going to live in new place every 6 months or so, ultimately, the decision belongs to you – it should be about your life and the vision of it that you have for yourself.

We sincerely hope that this information will help you make a decision, stay tuned for more finance tips in the future!

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