Home is where the heart is, and there is often a debate on whether you should buy your own home or rent it. From a young age, we are taught the wisdom of owning a property, and for some people, this is a definite possibility. For others, however, buying a home is something they may never achieve.
There has been some discussion in recent years debating the benefits of renting instead of buying a property. Many report that mortgage costs, government duties, etc. add to the expense of owning a home, and this may have resulted in the trend to rent instead of buy. We’ll explore both of these options to help you decide what’s best for you.
The Pros and Cons of Renting
Millions of people around the world rent their homes, and there is certainly nothing wrong with that. However, it is important to know what you are getting yourself into with renting. Let’s take a closer look at the pros and cons of renting a home.
Pros of Renting a Home:
- It could be cheaper than paying off a mortgage
- You won’t need to come up with a down payment
- There is no long-term commitment
- Moving to a new home is easier
- Maintenance is not your responsibility
- Repairs are only your responsibility if a member of your household causes damage
Cons of Renting:
- You have no freedom to make changes to the home
- You may not be allowed to keep pets
- Your rent price can be raised with little or no notice
- You are at the mercy of your landlord, who can evict you whenever it suits them
- The landlord or property can invade your privacy whenever it suits them for an inspection
- Your landlord may not order repairs when you report them even if it is their responsibility
- There is no real stability
The Pros and Cons of Buying your Own Home
There are many benefits to buying your own home. However, there is a lot to consider before you sign on the dotted line. It’s time to check the main advantages and disadvantages of buying and owning your own property:
Pros to Buying a Property:
- You have the freedom to make any changes you want
- Pets are allowed
- You have greater privacy and don’t need to let anyone in you don’t invite
- You can build your equity
- More stability for you and your family
- No unexpected repayments, especially if you have a fixed mortgage rate
- Interest rates are relatively low
- Even with a mortgage, you will eventually own your home outright
Cons of Buying a Home:
- Upfront costs are quite high
- Repairs and maintenance are your responsibility
- Property values can fluctuate, potentially causing you to lose money
- Building your equity can take a long time
- If you want to relocate, you must first sell your home, and this could take a months
So, Should You Buy or Rent a Property in 2021?
If you haven’t already purchased your own home, it may be wise to take it slow for the time being. Due to Covid, employment stability is at an all-time low, so this may not be the time to commit to a mortgage. If you are set on buying your own, stay within your means and ensure the mortgage repayments are manageable even if you find yourself in a pinch.