This very honest contributed post today talks about the merits of home ownership vs renting.
Sometimes it just makes no sense financially to buy for the stage of life you’re at.
Perhaps in our 20s we should stop worrying about buying, and instead focus on saving and building a proper emergency fund first. This will put us on a much more stable base from which to work from while we work our way up the career ladder.
I’ll admit, it doesn’t work for everyone, but I wish I’d know this before buying my flat. I definitely wouldn’t have done that and would have rented instead.
See what you think.
To Buy Or Not To Buy
The eternal dilemma of whether you should carry on renting your home for longer or buy your own is never easy to resolve. There are pros and cons associated with both solutions, so it’s up to you to make your decision. However, you can only do that if you have a proper understanding of what the benefits and drawbacks of each actually are. That’s what we’re going to discuss now, so read on.
The Benefits of Home Ownership
Home ownership provides you with more than just a home of your own; it’s also about finding greater security and making sure that you have an investment for the future. At some point you will then be able to sell the asset and use it to fund future home purchases.
You won’t suffer the consequences of being kicked out of where you’re living by a landlord because the home will be yours. That’s where the security factor comes in, and it’s something that shouldn’t be underestimated.
Unlike renters, as a homeowner, you’ll be able to make changes to your home, whether they’re major or minor. Even simple things like redecorating can be prohibited for many people who are renting their home.
Reasons to Hold Off Buying a Home
However, there are also reasons why you might want to put off buying your home until a later date. If you don’t really have the means to cover the costs of buying a home, don’t stretch yourself, because it could damage your financial situation later.
The costs of moving don’t just involve finding the deposit for the home. You’ve also got to think about stamp duty and the costs of hiring a solicitor. These are all things that cost a lot of money, and they’re costs that aren’t associated with renting.
Another reason to hold off buying a home is the flexibility that renting brings. When you’re young and you want to move around between jobs until you find the career that’s right for you, it helps not to be tied down to one location, so keep that in mind.
Why Renting Isn’t a Terrible Idea in Some Circumstances
With the help of good letting agents and a fair landlord, renting is not such a bad option at all. It can be ideal for people who are simply not in a position to push ahead with a home purchase. Many people feel a need to rush into buying a property but that’s definitely not how it should be.
Any excess money you have left over at the end of the month once your rent has been paid should be put aside to save for the future costs of buying a home, including building up an emergency fund. That way, you can keep your freedom for a little longer and be ready to buy when the time comes to do so.
Whether renting or buying, you need to take your time assessing the market and learning about what it holds for you. Only then will you be able to make an informed decision regarding which of these two way forwards is
right for you at the current stage in your life.
I hope you found this post helpful!
Now over to you- what are your thoughts on Buying vs. Renting?
Until next time,