Should I go for buying or go for renting? Which one is better for my current financial status? I believe this is the most annoying question that besides of “when you get marry” or “when you plan to have a baby” etc etc. But, do you ever ask yourself whether you’re suit for buying or renting a house?
Before you answer this question, here are the other questions you should ask yourself first.
My first house should go for investment or own stay?
In this question, you may need to re-think about your future living arrangements. One home is not a guaranteed source of income. There are many factors that affect a home’s valuation such as location, neighborhood, management as well as its facilities. A great deal of planning is required to search for the house that perfect in investment such as easy to rent or sell out. When you plan for sell out the house after 5 years, all these factors will affect to the final selling price. (Do read our another article: Should I Buy A House For Myself Or Investment)
Are you comparing monthly rent to monthly loan repayment?
The biggest mistake for many people who often compare the monthly rent to monthly home loan installment. Honestly, when you comes to buying a house, there are many existing additional costs that you need to think about only make a fair comparison which is property tax, property insurance, property maintenance and etc. Especially the property maintenance, in some cases, it is costly than other taxes or fees. For example, wiring goes wrong or pipe leaking, the you must find the specialist to fix those problems to you.
Are you able to control the stress?
Buying vs renting, this is the biggest decision to make for many people in the world! You can’t underestimate the stress when you comes to buying a house. Stress overload can caused missed payments, which can effect you personal credit or even losing the house. If you don’t think you are ready to buy a home, then rent first! Don’t push yourself so hard. (Do read our another article: Tips to Reduce Stress When Buying a House)
What is your current age?
Don’t laugh! This is an important question to ask yourself. If you are in 20s or early 30s, there are some arguments for not buying a house. It is about your responsibility. Once you own a house, you are required the financial flexibility which will affect your social life as you have to pay for your monthly loan installment. But if you have sufficient fund after pay for home loan, you still can use that money to take yourself to the interesting places.
Besides, kindly take note that if you’re buying a house after 35s, the bank most probably will reject your house loan application or narrow the period for loan repayment. When that happens, buying a house becomes much more difficult as you need to prepare a lot of money for monthly installment. (Do read our another article: Why You Should Buy House In Young age).
Last but not least, to buy or to rent? You should ask yourself all the above questions before make your decision. If you think you can afford for a house and still in a comfortable on financial status and stress free, then you should go ahead and proceed with the purchase. If any of the above questions strike you to shout “No Way”, then you should go for renting instead.