Renting vs Buying🤷 is one of those things people never really agree on. Some people consider renting a waste of time whilst others see buying as an over exaggerated traditional act which has no real value in today's world. Whichever side you are on, here are some facts.💪😀
So is renting a waste of money?😰
Most people consider it throwing money away and paying the landlords mortgage. This is because when you rent you essentially pay for space which has no value after the time you paid for has elapsed whilst when you buy you are essentially still renting but rather than not having any value, the monthly repayments you make go into buying an asset. This means your money isn't lost as you can sell that asset and get back what you paid or a similar figure.🙌
Your asset can also appreciate in value.🎈🎈🎈
Most people consider renting a good way to put capital which would otherwise have been spent on a mortgage deposit on other things such as a business or other investments. So in essence it's about the opportunity cost.😒
When you should rent?🙊
Renting is a good idea if you need flexibility and plan to move within a few years.
If house prices are rising and way beyond what you can afford then renting is the best option for the time being.🤗
Renting doesn't require you to have an amazing credit score.
When renting you don't have to pay for most property taxes and minor repairs are carried out by your landlord.
Should you buy a home?🏡🎗
Buying a home is a huge financial commitment and you should ensure you are ready before committing to it.
When you buy a home you will be responsible for the property tax, insurance, mortgage payments and any repairs to the house. These costs can add up slowly and end up making up most of your monthly wage if not more.
You will also need a good credit score, a steady job and a good amount to put down as your mortgage deposit.👗👘🧤