To Buy or Rent a House - That is the Question
At certain point the question of whether to buy a property or to rent it
becomes a milestone in our lives. It is an important question, but the
answer is never straightforward. It depends on many things such as the
real estate market conditions, your personal circumstances, and it's
never an easy decision to make. This article will try to ease up your
choice by providing you with some of the important things that must be
considered before deciding whether to purchase a home or simply to rent
it.
The first thing that most people think when it comes to
buying a home is if they will be able to pay the mortgage. The majority
of people believe that if their current rent payment equals a possible
mortgage payment then it is worth buying a property which you can call
your own, and this seems very logical, but is the reality so simple?
Well, not quite. Having a house is much more than just paying your
mortgage. You will also have to consider other expenses, such as
property tax, homeowner insurance as well as the endless repairs and
maintenance costs which will be necessary over the years. So when
calculating the real total of your costs, end of lease cleaning
professionals in Melbourne suggest to add 40-45% of your mortgage to
determine your actual potential spendings.
Next thing to consider
is your future plans. Are you planning to live in the house for long?
Or is relocating a possibility? If the latter is more likely to occur
then renting is the much better choice, firstly because you won't have
to go through the hassle of selling when you need to move out, and
secondly you won't risk losing money on the sale. Additionally,
considering how secure is your job is also important. If you have been
working in the same company for the past 5-10 or more years, then it
will seem much safer option to purchase a house, but if you have just
recently graduated and this is your first job, where you have started
from the lowest level, then it is much better to wait for a couple of
years.
Finally, you should also think of the value which your
property will have if you decide to resale it. If you want to purchase a
house, live there for several year and then sale it, then this, in my
opinion, is a great investment for the future. However, if your plan is
to buy a property and resale it shortly after, then you might end up
losing money. First of all, the real estate market is still recovering
from the economic crisis and since not so many are looking to buy
houses, then you will most probably lose money. Moreover, if something
unexpected happens and you need to sell the house urgently (you got a
promotion in different city for example), then again, you might not be
able to unload your property for a decent price.
So, as you can
see buying a property has its downsides, therefore I strongly recommend
you consider your current situation first and look at the big picture in
your life before making a decision.
Advertise on APSense
This advertising space is available.
Post Your Ad Here
Post Your Ad Here
Comments