Getting your own house or renting a space where you and your family can live is, indeed, one of the most important and the biggest decisions that you have to make whether you already have a family or you’re on your way to having one. There are so many considerations that you need to keep in mind. Also, everything boils down to your savings. It will be the main determining factor you will have when trying to make decision. So, to help you make up your mind on which option is better than the other, here are some points for you.
Aspects to Consider
When deciding on whether you should buy your own home or choose to rent a space, there are aspects that you need to consider. The first one is the current condition of your finances. Have you earned enough money to be able to buy a house? Are you a young professional who is still trying to figure things out in life? Well, if you have a stable source of income, but you still haven’t earned enough to buy a house, then you’ll have to settle with having to rent your own space, unless you choose to apply for a loan to have enough money to buy your own house.
The other aspect you must consider is the one related to your personal or private life. Are you married? Are you single? Are you trying to build a family? It might really be impractical to still be renting a house if you already have the budget to buy one. In this case, think long-term. Instead of paying the landlord your monthly mortgage, why not find a rent-to-own house?
However, let us not be biased. So, here is a list of the pros and cons that come with having to rent your space and buying your own house.
Pro: Renting your own space, you don’t have to make a one-time off payment. It is really practical, especially for those who are still trying to establish their careers.
Con: A huge disadvantage of having to rent a house or an apartment is the fact that it is not practical to spend your money in something that is not going to be yours. Sooner or later, you will have to leave that place, but will you get a refund for all the money that you have spent during your period of stay? Of course, not! Also, rental fees can always change from time to time, depending on the costs of utility services and on the needs and demands of the people who put up the place for rent. Once your salary is no longer enough to sustain the mortgage, you will be forced to move out and find a new place where you can stay.
Pro: Start with the obvious. Once you bought the property, it’s yours. You will always have a place where you can go home to. Just like what was mentioned earlier, as well, having one is a great investment since it can be something that you can pass on to the next generations of your family.
Con: Of course, one of the biggest disadvantages of buying your own home is that you have to think about huge down payments – something that will be difficult for you to handle if the amount of money you are earning is still insufficient. While getting a loan can help you buy a house, paying for the monthly mortgage is going to be a concern that you will have to deal with.
So which one is the better choice?
At the end of the day, the decision on which one is more practical for you depends on the two aspects mentioned above. However, one of the most practical options that you can consider, whatever your financial condition may be, is finding a rent-to-own house. This way, you will not have to think about having to pay for the huge down payments of getting your own house and still be able to get all the rights over that property after you have fully paid for the place that you have chosen.
Are you renting? If you are, what are the points you agree or disagree with?
Did you rent prior to owning your own house? What challenges did you overcome?
Share your thoughts with me and my readers by commenting below.
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