One of the biggest adulting decisions you’ll ever make is related to housing. Aside from housing being most people’s most significant financial expense, being able to make calculated steps is also crucial.
As a career person, aspiring to have a better career journey can help you achieve goals in your personal life, too. This is why deciding whether to rent or buy your own space is more than just a financial decision. You also have to take other things into consideration, such as your career goals, your emotional state, and your long-term plans.
Before anything else, let’s look at the top pros and cons of each.
- Better mobility
- Maintenance costs are covered by the landlord
- Fluctuation in monthly housing expenses can be avoided
- Ability to test-drive different living spaces
- Limited customization opportunities
- Rent costs can increase over time
- The owner might sell the house or stop renting
- Limited sense of home stability
- Home value may increase over time
- Customization freedom
- Sense of home stability
- Maintenance costs and repairs
- Home value may decrease
- Limited mobility
Factors to Consider to Decide Between Rent vs Buy
To better help you make an informed decision, here are some factors and tips you should take note of before opting to rent or buy a home.
The costs (and your financial situation)
In most cases, renting is a more viable option than buying a home due to the upfront costs and bigger responsibility that come with it. Such costs include down payment, closing costs, moving costs, renovations or repairs, and other maintenance tasks.
However, opting to buy a home also has its fair share of advantages as previously mentioned. This option can be cheaper in the long run and your home can increase its value over time.
With these, gauge your financial capabilities so that you can choose which fits your situation best!
Your duration of stay and mobility
Are you that type of person who’s into the idea of being in one place permanently or are you more open to having flexible options?
If your long-term goals coincide with staying in a home for at least 5 years, then buying would be a better option for you. This choice will fit your financial and emotional situation, as you can get more of your money’s worth from a home that you can highly personalize and call something truly yours.
On the other hand, renting can fit you well if you’re into a more nomadic approach. Having to deal with selling a home because you need to move to another part of the country (or the world) for your career or other personal reasons can be something too much of a hassle for you. So, it’s imperative for you to consider these before jumping to a decision.
The risks of renting or buying
While both have their own benefits, you also have to note the risks or cons of each.
Buying a home can expose you to potential financial losses if there’s a downturn in your local real estate market. Aside from that, your responsibilities include maintenance costs which can really get expensive over time.
With renting though, costs can go up any time as well. You’ll also have to deal with your landlord’s decisions every now and then.
Now that you’re aware of the most common considerations in this major life decision, it’s best for you to sit down, reflect, and plan ahead. This is going to be part of your other goals and plans, too, so you have to be intentional. Aside from that, your personal life decisions can affect your career. That’s why these must go hand in hand for more holistic and careful planning.
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