Is it more financially beneficial to rent or buy property? It’s a conundrum everyone faces at some point in their life. At one point or another, you’ll look at the cost of your rent and wonder if it’s worth it. We can solve this problem by answering a few simple questions.
How Much Money Do You have Saved?
It takes a lot more money than you probably think to buy a piece of property. Many people believe you’ll have enough money to buy a home when you have five percent of the asking price. Therefore, if you are buying a home that is worth one hundred thousand, you only need five thousand saved, right? Wrong because that’s the bare minimum you’ll need. To get a good mortgage repayment deal, you should be aiming to pay around twenty-five percent of the asking price upfront. That way, you’ll be able to access frozen or smaller interest rates on your mortgage. But the costs don’t end there. You also need to think about the other costs involved in moving to a home you own. This includes paying for a solicitor, home inspection and a moving team. All that adds up leaving quite a large sum at the end of the day.
Can You Afford The Lifestyle You’re Living Now?
What we mean by this is can you afford to buy the home that gives you the same lifestyle you get when you’re renting? Will you have a sauna in your bathroom or hardwood floors? If the answer is no, then you are probably better off renting. All that will happen is you’ll buy a house and spend a fortune improving it. When instead, you could have been looking at renting apartments from Post Brothers Apartments. These properties are designed to perfection and are already a dream come true. However, if you think you have enough money that you can afford to buy a stunning property let’s ask the next question.
Is Your Income Stable?
You need to consider honestly whether there is a possibility that you could be made redundant in the next few years. If there is, don’t believe the false promises that you hear about online. Most loan companies will not wait long to see if a homeowner can get back on their feet. You will have less than a year before late mortgage payments means that the home will be repossessed. At that point, your only option will be to take out another loan and this is the road to debt. If you are unsure whether your job it’s stable, it’s best to wait until you are in a safe situation.
Do You Want To Be Tied Down?
Many people believe that buying a home is one of the best ways to invest hard earned money. But this is only partially true. When you buy a property, you’re tying a lot of money down, and you’ll only get it back if you can sell the house on. In this type of economy selling a home is no easy feat. You need to think carefully about whether it’s the right home for you before you commit to a purchase.
Now you know the issues of buying a piece of property you’ll be able to think whether you’re in the right position to do so.