Choosing to rent or buy a home depends on your lifestyle, goals, and savings. For some, owning a home could be the next milestone in their lives that is well within reach. But for others, renting could be a more viable option due to factors that may or may not involve financial resources.
Consider the pros and cons of renting versus buying a home:
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Who’ll want to rent
Among young people who are just about to earn independence from their respective families, renting an apartment unit or a starter home could be the most sensible option as they start to conquer the world and build their careers. This could also be a smart option for those whose work requires them to travel often, as renting doesn’t tie them down to one place.
Of course, renting doesn’t give one the opportunity to own the place they’ve been living in for months or years. There are also some circumstances when one’s payment for the monthly rent can exceed or be just as substantial as the mortgage on a house that’s in one’s name.
Who’ll want to buy a house
Former renters who have managed to prepare a good amount of money and are ready for the responsibilities of homeownership are good candidates to buy a house. So are those who plan to settle in one area for good and grow families of their own.
Gone are the days when you were at the mercy of a landlord. However, you also take on all the responsibilities of home management, from expenses to overall upkeep.
Criteria for readiness
When choosing between renting and buying a home, remember to ask yourself these questions:
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Do you have the budget? Decide whether you are financially ready to commit to a mortgage and the additional expenses of owning a house, or if you would rather pay rent.
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Do you have stable employment? How much you make and how long you can hold a job will help you decide whether you should rent a home or take out a mortgage on your own house.
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Where do you currently live? Whether or not you can afford to buy a house will also depend on the real estate market in your location.
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How long do you plan to stay in this location? If you’ll be living in a place for less than five years, renting would be a better option.
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Is this the right time for you? You may be going through big life changes like marriage, an illness in the family, or divorce. Or you’re still constantly on the go. Take into consideration your current stage in life when you make your decision.
