Are you on the fence as to whether or not you should buy or rent? Below are some pros and cons of each to help you decide.
Buying
Pros.
You are investing in a major asset
Buying property is a fantastic investment and, as long as you meet your mortgage payments every month, after a few decades you will fully own your own piece of property.
You can make your home your own
Unlike renting, owning your own home means that you can customize your house as much as you want. From painting it in bright colors to fitting a new bathroom, the choice is entirely yours!
You have a sense of belonging
Owning a property can help you to have a sense of belonging in your community.
Cons.
It is difficult to just pack up and move.
Selling your home is a long (and sometimes costly) process and it is not as easy to just pack up and move whenever you feel like. Owning a home is a commitment that some people just aren’t ready to make.
You are responsible for repairs and maintenance.
While you may have great interest rates with your bank and reasonable monthly repayments, if something goes wrong, you are responsible for the costs! For example, if your roof needs repairing or replacement, this could set you back at least $10,000!
Renting
Pros.
You can move around as much as you want.
If you are not ready to decide where you want to live, renting is a great option to help you discover more about various neighbourhoods.
Your monthly expenses are predictable.
When renting, you have fixed monthly expenses since you are not responsible for repairs or maintenance.
Cons.
You may feel like the home is not your own.
Even though you have a signed lease, your rental home is not yours and you may feel like you are just a temporary resident.
You may be forced to move when you don’t want to.
Renting involves signing a fixed term lease but your landlord may want you to move out after the lease term, even if you don’t want to.
You have to follow your landlord’s rules
Since you are renting someone else’s property, you have to follow certain rules, such as having no pets or not being allowed to paint the walls. For those who like to do what they want when they want, renting may be difficult!
