There are several things that you may have to consider before you buy a home or rent it out. You can find many resources on the internet concerning the financial implications of both options. But it is important to know that the decision to buy or rent is a lifestyle decision as much as it is a financial decision.
Flexibility and Longevity
How long you intend to reside in a certain area and how accessible you want your home to be from the important centres in the city are some factors that are important enough to be considered.
The duration of a rent lease is usually around twelve months and it is possible to have a flexible move-out date if you’re on good terms with the management company or the landlord. If your life circumstances compel you to move to a different location you have greater flexibility to do so with a rented house than a purchased one.
Moving away from a home you own can be slightly more complicated than moving out of a rented house. If you own a property you may have to put it up on rent or sell it before you can relocate. Accomplishing these tasks can consume more time and resources than if you were living in a rented apartment.
Since the decision to buy a house involves a major investment of money and effort from your end it is advisable to reside in the location of your choice for a few years before you finally purchase a property there.
The experience of staying in a rented home can be quite different from that of staying in a house that you own. There is a far greater responsibility involved in living in your own house than there is in the case of staying in a rented apartment.
Usually in a rented apartment you are not liable to maintain the house, at least not to the extent of maintaining your own home. Landlords usually fix any issue related to the house and it is possible that you can spend the entire year without having to replace a bulb or putting up with any major renovation work.
But staying in your own house can be a completely different experience. There is not a single task that you can let go unless you do not mind living in a complete mess. From mowing the lawn to cleaning the gutters, there is nothing that you aren’t supposed to do. However, in a rented apartment there is no expense that you have to incur towards maintenance. Even a broken appliance will be fixed by the landlord. In this way, the living expenses can increase greatly if you are living in a house that you own yourself.
Another major factor you may have to consider when making a choice between renting an apartment or buying one is the extent to which you like your home to be customised.
Some of us like our homes to be a true reflection of our own selves while some are comfortable living in whatever conditions exist around them. If you want your kitchen to have a particular type of flooring and nothing else can work for you, a rented apartment will be a bad choice.
With your own home you have greater control over your surroundings as you can then paint the wall with any colour you like and make any changes to your living space. With a rented house, the landlord’s taste in home decor passes off as your own.
When it comes to buying or renting, amenities is another major consideration that must be taken into account. If you rent an apartment you are likely to enjoy better amenities than you would upon purchasing a property.
Suppose you like having a pool around. If you are looking to purchase a property that has a pool you may have to spend a lot more. Not to mention it may be an impractical investment. On the other hand, it may be easier and more cost effective to find a rented apartment with a community pool.
As we mentioned earlier, the decision to buy or rent a house is largely a lifestyle decision and it can have a great impact on the way your life and finances shape up to be. If you decide to purchase a home make sure that you protect your asset by writing a Will using a free Will kit.