Which is better: to rent or to buy? It’s a question that many people have different opinions on, and there’s no denying that both options have their pros and cons. If you’re in the situation where you find yourself asking this question, we’ve prepared a few points outlining a few important things to note when it comes to owning a home. It’s by no means a decision to be made lightly!
Pros of home ownership:
- The biggest pro to buying a house is once you have paid your mortgage off, the house becomes 100% yours. You will never need to pay rent again. The place you reside in belongs to you and no one else.
- It becomes part of your “assets”. It looks great as part of your financial portfolio when you own a house and even more so when you own it free hold (mortgage free).
- When you retire you won’t need to outlay costs for rent (assuming by then you have paid off your mortgage).
- You are paying off your own mortgage rather than someone else’s. When you rent a property, you are paying for someone else’s debt on their property.
- It is often cheaper to pay a mortgage than it is to pay rent on a property.
Cons of home ownership:
This list isn’t so much “cons” in black and white but just some points to be weary of:
- Home expenses will need to be paid by you. When renting, if something breaks or repairs need doing, the landlord picks up the bill. As a homeowner, this expense falls in your hands.
- You can’t just “up and leave”. If you are freedom searcher and like living a life where you travel lots and make spontaneous decisions, then home ownership may not a be a great idea just yet. If you have the travel bug and want to venture overseas for long periods, you would need to either rent your property out or have enough money in the bank while away to finance your loan on your property.
If you have any further questions on owning a property and all the decisions that come with it, talk to us at Priority Home Loans – we offer a free of charge service to help you with your decision making.