Tips When Deciding to Buy or Rent
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Tips When Deciding to Buy or Rent

When venturing into the property market, it can be difficult to decide whether to buy or to rent. Each option has its own distinct advantages and disadvantages and you need to carefully weigh these up before making a final decision. Read on for some more in depth advice.

In all probability, your house will be the single largest purchase that you make. When deciding on buying a house vs renting, there are a lot of things to consider. As a result you need to view it not only as a home but as an investment. The property market present is still a buyer’s market and it could be a good time to invest. A lot of people have the belief that paying off someone else’s mortgage is a waste of time but are scared to commit to a mortgage themselves.

Should I Rent Instead of Buying?

When considering buying a house vs renting, it can seem cheaper to simply rent. It usually means less maintenance as well. With rentals you do not usually have to pay for big repairs or property taxes. Renting has some definite advantages, especially if you are unsure of where you want to buy.

Simply packing up and leaving is a lot easier if you are renting and so buying a house vs renting one can seem to be a bit too much of a commitment. You will also be likely to enjoy a higher class of property than you would be able to buy. If you calculate the savings in terms of property taxes, etc renting works out cheaper month to month.

Of course, at the end of the day, you are living in someone else’s house. This means that there are going to be some limitations to what you can and cannot do to the property. You may not be able to decorate it to your taste and have the added worry that your lease may not be renewed.

Should I Buy a House?

When deciding on buying a house vs renting, it is important to consider the investment potential of the property. You are going to end up paying more than you would for a rental because you will have a bond to repay, interest on that bond and all property taxes and rates. If you only pay your minimum monthly instalment, do not expect to see your bond drop much in the first two to three years because of the interest. By trying to pay extra into your bond, you can beat this.

You do, of course now own an asset and this should, hopefully, appreciate in value. You must always remember though that a property investment should be considered a long-term investment. You could be looking at a term of ten years or more to ride out the vagaries of the property market.

When all is said and done, each option has advantages and disadvantages and it is up to you to make an informed decision after carefully considering these. At the end of the day, you must do what is right for you.

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Comments (2)

As for me, I'd buy...

Me too - but its not always that simple

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