BUY vs RENT – Riel Homes
Renting and Owning a home has been one of the contemplating topics that has been on trend for the past years.
Sequel to that, riel is here to clarify. What do you feel a home is? (Leave that on the comment section)
A home is much more than just four walls and a roof. It kindles a range of emotions and thoughts in us. To some, it is a sense of security; to some, it is about comfort and to others, it is a symbol of status and accomplishment. But there is also the other aspect of a home to contend with. It is to do with numbers (here we are talking about the financial aspect).
Buying a home comes with alot of freedom sense of belonging.
Choosing to buy or rent, though, is a major decision that affects your financial health, lifestyle, and personal goals. Whichever option you choose depends entirely on your lifestyle and financial situation. But as you denote what exactly it is to choose, you can note there is a clear difference between renting and owning a home. Renting a home/property limits the responsiblities associated with home ownership accompanied with flexibility.
Owning a home isn’t always better than renting, and renting is not always as simple as it seems. Here, we highlight some of the key differences between renting and buying.
RENTING A HOME
One of the biggest myth fabricated by most people is that renting a home means wasting money but pushing that aside it not always true.
Having a roof over head is one of the basic things human need, paying for shelter shouldn’t be termed as wastage of money. However we can term that as lack of equity with monthly or yearly rent payments, not all of the costs of homeownership always go toward building equity.
In addition, we can also note that aside the rentage money, the landlord may also decide to add service charges (utilities, storage, parking) etc depending on location. Renting means you are dynamic in your decisions to either change shelter due to maybe landlord want to sell property or used for another purpose.
Owning a Home
Homeownership brings both tangible and intangible benefits. Not only do you have your own home, you can make decisions about the look and design of the space, but you also get a sense of stability and pride of ownership.
Keep in mind, though, that changing your mind about where you’re living can be very expensive since real estate is a liquid asset that is it can’t be easily and readily be sold or exchanged for cash without a substantial loss in value. You may not be able to sell when you want. And even if you do, you may not get it at the price you want, especially if the housing market is down. Even if it’s up, there are significant transaction costs associated with selling your property.
Though owning a home comes with some payments as well that may not be necessarily paid by renting i.e Fumigation, Pool Cleaning if having one etc. And let’s not forget repairs and maintenance, which can be very costly but you have no choice, you are the landlord of your home.
Now Let’s get back to the question
WHICH IS BETTER (RENT VS BUY)
Actually there is no perfect answer to this because it depends on conditions. What Conditions?
The answer depends on your own personal situation—your finances, lifestyle, and personal goals. You need to weigh out the benefits and the costs of each based on your income, savings, and how you live.
Then you can give the best answer to yourself. Whether Rent or Buy, the decision is yours to make.