Buying yourself an apartment always presents a huge milestone in anyone’s life and a great leap toward personal independence. After all, you are finally saying goodbye to landlords, rents, constant dependence on others, and other annoying hurdles.
But, what if that dependence actually relieves you from a great level of responsibility? And if, in today’s economy, paying rent actually presents a more prudent option.
Yeah, all these things are something you should take into consideration before making any kind of leap of faith that is not in your best interest. Well, let us take a look, then, at strategic tips that will help you find the solution that will work the best for you and your long-term plans.
Personal requirements
Your future dwelling should ideally be able to suit your lifestyle and personal preferences. So, if you, for instance, want to have a nourishing space for cultivating mental health, you should by all means get one. In this regard, both new homes and rental properties will, depending on availability, be able to suit your needs.
But, you need to have a crystal clear idea about the things you absolutely need to have and the red lines you don’t want to cross. Having such an unequivocal list of requirements will make your search for a new home much simpler and prove to be one of the most deciding factors.
Financial obligations and long-term plans
Buying a property puts a hefty sum of money on the table so it’s easy to understand that financial considerations need to take into account your decision-making priorities. Try then to assess your financial abilities and financial stability, long-term plans, and career prospects.
Here, buying a house gives you a much clearer idea about the exact amount of money you will need to spend. Mortgages also keep you under obligation for a longer period of time. Renting an apartment is all out in the open with complete freedom to make future adjustments. This is paid for by the lack of ability for long-term planning.
Business opportunities
Essentially, this consideration boils down to whether you are ready to settle or not. If you are still branching out and building your portfolio, shorter-term apartment rentals may prove to be a more flexible option you need.
Also, renting an apartment doesn’t keep you bound to one area and local business opportunities – whenever you feel you have depleted your options you can simply raise your anchor and move on.
But, if you have already built yourself a career or own a company, you can apply for a mortgage. Exploring the local market and economy will make this decision far simpler.
The local housing market and its future prospects
The housing market, like all other markets in the world, tends to go through massive swings. So, there are some instances when buying a house simply doesn’t make financial sense. If that’s the case, renting an apartment until the dust settles presents a good temporary solution.
But, we don’t need to think of houses solely as some burden we need to drag through countless years ahead. Investing in a property located in the market that is expected to develop and grow can give you an excellent financial asset you can later resell. In any case, good knowledge of the local market is imperative.
Price of ownership and maintenance
Most people think that, when they finally buy their first house their financial obligations boil down to paying off their mortgage. However, owning a property always entails the so-called owner’s cost which covers the expenses like permits, insurance, repairs, maintenance, etc.
If we are talking about the house you can also add into account the time and money you will invest into the backyard. When these costs are accounted for, renting an apartment can simply end up being the more sustainable solution. Of course, this financial leeway is paid by the lack of ability to perform adjustments on the property.
Building equity as time goes by
Last but not least, we would like to remind you that renting leases are not always terminated on your own terms. Sometimes, the landlord may simply send you notice for reasons completely out of your influence. Also, raising a mortgage and paying off rents, builds your credit score and opens you doors to other lucrative property options.
Paying off rents, unfortunately, does not. So, if you want to build equity and have some sort of long-term certainty the higher expenses that are associated with buying a home are simply unavoidable. But, that’s something that firmly falls under personal priorities.
Well, we hope these six suggestions will help you to properly assess whether you should buy a house or you can live just as comfortably by renting an apartment.
Of course, all the decisions you are going to make will be heavily informed by your personal preferences and plans so take everything we talked about above only as a blueprint you can build upon with your own idea.
Just keep an open mind and find the solution that works best for you and you only.
By Mike Johnston