The time will come when you will want to leave your parent’s home and either buy or rent a property of your own. Without a doubt, whichever option you choose, the monthly cost is likely to be greater than the amount you paid to your parents each month for them to provide a roof over your head and no doubt feed you as well.
One of the biggest decisions you are ever likely to make is whether to buy or rent a property so the following may help you make that difficult choice:
Benefits of home ownership
One of the major benefits of owning your own home is that, potentially, it is an asset that is likely to increase in value over a period of time. Many people will need to take on a mortgage in order to purchase their own home but at least, as every mortgage repayment is made, you are a step closer to owning your home outright.
Another plus factor of owning your own home is that you can make structural improvements and redecorate it to your taste.
When you have paid off the mortgage and own that property outright it provides a great deal of security as you have a place to live for life.
Disadvantages of home ownership
You will be responsible for maintaining the property should any repairs be required that can, potentially, prove costly.
You will require a sizeable deposit that may be difficult to raise. The cost of buying and selling a property often runs into several thousand dollars so you are less likely to want to move properties/locations.
Benefits of renting a house
The monthly rental is likely to be less than what the mortgage repayments would be on a property of a comparable size so you may be able to rent a property of a higher standard for the same amount you would have paid each month in mortgage repayments.
If any repairs are required to the property, the landlord is normally responsible for them.
Also, if you wish to move you have greater flexibility as you will just have to give the appropriate notice and see out the term of the rental period.
Disadvantages of renting a house
The biggest disadvantage is surely the fact that you will never own the property so, when you do come to retire, and your income reduces, you may not be able to afford the monthly rent so may need to find a different property that is of a lower standard with a smaller monthly rental.
There is a lack of security as you will never know if the landlord wants you to leave the property until a few months before, meaning that you will have the upset of having to find somewhere else to live.
Ultimately, you must make the final choice as to whether you should buy your new home or rent it but, hopefully, the above will help you reach a decision that you feel comfortable with.
Katherine Flowers is passionate about design concepts, commercial real estate and Home builders. She does freelance writing for several clients including Ownit Homes – House and Land Packages.