Before You Rent or Buy a House, You Must Read This Post!

Before You Rent or Buy a House, You Must Read This Post!


rent or buy a houseBuying or Renting a House is a decision that only you can make.  Weigh the pros and cons of buying and renting so you can decide which option suits you best in the short and long term.  The immeasurable amount of freedom you’ll have when you buy a home versus the flexibility you’ll get when you rent a property are enormous!

The following table shows some practical scenarios:


BUY

RENT

PRIDE OF OWNERSHIP.

Advantages:

  • You can have the freedom to make changes to your home without approval from a Landlord;
  • Freedom to keep pets, do gardening, etc.
  • Freedom to stay as long as you want and move when it suits you;

Disadvantages:

  • You will shoulder all financial responsibility on regular house maintenance.

 

 

FLEXIBILITY ON MOVING.

Advantages:

  • You can move in soon after funding the suitable rental;
  • You can leave for a better location after your lease is up or whenever you see it fits with less hassle.
  • You will have no maintenance cost, worries and responsibilities on house repairs, and property taxes.

Disadvantages:

  • You need to get approval from the Landlord for any house changes and renovations. Lack of control and ownership.

 

PERSONAL INVESTMENT

Advantages:

  • Owning a home offers the long-term benefits of security, equity and potential growth in personal wealth;
  • The value of the property can appreciate and this is a good investment

Disadvantages:

  • Larger financial responsibilities and extra-cost for all house changes;
  • Lack of flexibility in moving when job relocation is required.

TERMED COMMITMENT
Advantages:·The best option when staying temporarily in a certain location;·Flexibility to move when job relocation is required;·Savings and minimum monthly expenses on rentals and Tax-free obligation on mortgage.

Disadvantages:

  • No personal wealth gain on investment;
  • No full-ownership in the future.
  • No Tax-rebates benefits.

 

 

CONSIDERATIONS

  • Consider buying a house when you have enough money to use as a deposit for a home loan, if qualified;
  • Consider buying when you are looking for a rewarding long-term investment.
CONSIDERATIONS

  • Consider renting a house when you’re just starting to save for a deposit, and don’t have enough money for a home loan;
  • When you consider yourself not living in a place for more than 5 years, consider renting first.

The above are major benefits, advantages and disadvantages of renting and buying a home or a property. The decision to rent or buy is very much a lifestyle decision as it is an economic issue.

Either decision is greatly influenced by the individual’s life stage such as getting married, starting families and being able to afford to do so, amongst many other considerations.  The simple comparison here is just a start to an important decision and determine which option is the most cost effective. We can guide you to make a knowledgeable decision on whether to buy or to rent a house.

Get in touch with us for more information.  Call us at 216-282-4332 and we’ll help you make your decision – fast!

 

 

 

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