Rent or Buy a Home – What is more Practical?
There is no exact definition of ones success.. Some might define it as having a great career and owning the best homes. For some, it meant living the best life while traveling. Whatever it is, the best way to achieve success is to hustle today. And so we need to be practical in our decisions at the present, which brings us to the question of what is more practical– Renting a home or buying one?
Flexibility
Flexibility is the upside in renting. While renters could practically live anywhere they choose, homeowners are “stuck” in the location they could afford. In renting, renters don’t only control the place they want to live in but also the time they wish to move out. Although, this is not the case for everyone. Some people choose to buy homes as an investment. So strictly speaking, in buying a home you are not always stuck in it as long as you could pay for it regardless of where you choose to live.
Location
The best locations are almost always pricier than their counterparts on the outskirts. It might be because they’re near hospitals, schools, or workplaces that make the demand for homes higher. Hence, if a person has a budget of Php 100, 000 a month allocated for renting a two-bedroom condo in a top city, he could probably pay for a villa in the province if he would trade location for a bigger home. That being said, it is cheaper to rent in the best locations.
Cost of Living
Transportation and location are the factors to consider whether or not the cost of living is acceptable. Renting out will give the option of living near the workplace. While buying a home might have the added cost for transportation to and from work. In this scenario, renting a place might outscore owning one. But then again different situations call for different solutions.
Maintenance Costs
With owning a home comes the responsibility of maintaining one. The water pipes, electrical connections, roof leakage, and whatnot, are some of the maintenance cost that homeowners pay for. This puts renting at the advantage as renters do not have to worry about maintenance. All they have to do is ask the landlord to fix it for them.
Profitability
While renters could enjoy the joys of not being tied to the commitment of paying for their homes, homeowners could enjoy the fruits of their labor by profiting from their investment. In a few years’ time, property prices appreciate and so buying a property is more profitable.
Whether you should buy or rent a home, it will all boil down to your lifestyle and the goals you set for yourself. Do you want to live like a bachelor in the best part of town or do you want stability? Do you want to save up first by renting so that you could buy your dream home rather than settling for less? Talk to a property advisor now.