When you are in doubt if you should buy or rent a home, watch this video today. To find out which option would suite you best.
The burning question
When people compare buying to renting, in most cases they compare the wrong numbers, and therefore it is always an unfair comparison. But when you really want to find out, it is important to know which aspects play a role in finding out which is the most suitable for you.
Aspect #1: why rent or buy?
Did you know that most people, who buy a home, stay about 7-9 years in one home in one place. But in general when you rent a place it is cheaper when you only stay there up till 3 years. When you already know when you’ll be staying there for more than 4 years, buying will be cheaper, as the costs up front will be more compared to renting.
Aspect #2: expenses
When we actually look into details, you’ll see that buying a home will bring the following costs:
– property taxes
– property insurances
– property repairs
Compared to renting, you only have to pay for renting costs, and all the taxes, insurances and repairs are included in the price of the landlord.
So in that perspective, renting is more included.
Aspect #3: benefits
The benefits to buying is that the property is yours, and you can do with it whatever you want. There is equity growth, and all that value, the moment you do sell off the property, it is yours to keep. Next to that, you do have to pay taxes, but all the benefits related to taxes are also yours to keep. And then since the property is yours, you may do whatever you want in the property. You may remove walls when you want to… Or not.
The benefits to renting is that you have all the flexibility, you can go and leave whenever you want to. You are not bound to one place. All the maintaince of the building is for the owner. Since you are not responsible for that. Next to that, you can get the best locations, rent may seem higher, but if the location is better, you may get many advantages from that.
How I could crawl back from the bar to my apartment
When I was a student, location was far more important than just the price of the place. I could just crawl back from the bar to my home, within 5 minutes. But having both is best… Owning the place, and being able to crawl back to my place.
The 3 aspects of buying or renting
In the end, it depends really what your wishes and purposes are
I know I like buying, as my location doesn’t have to change.
And I like buying rental properties, as I will always have my tenants take care of my property and also generate me some income as well.