Part of being an adult is getting a job and starting to live by yourself and finally getting out of your parents’ comfortable house. At some point down the road when things go well, you may settle down and start toying with the idea of buying a home or continuing to rent. To help you make this decision, have a look at these three factors you should consider before making your choice.
The Ability to Customize
Having your house will come with the ability to customize everything as you see it fit, changing what you don’t like and improving what you think could be better. Things like expanding your living room won’t be possible to do for a house you’re renting but will be possible with a house you own. You may need to change the layout by knocking down a wall or two or even introducing a partition. You will be able to use your furniture as you please, considering that items like easy chairs, sofas, and recliners can survive for up to seven years in solid condition but start to get out of decent shape as the 15-year mark reaches. This may motivate you to get crafty with your furniture and even invest in new pieces.
The Financial Aspect
You ought to take the time to weigh the financial implications of renting and of buying and figure out which cost will be better for you to handle. In a survey, over 50% of the respondents said that renting was a better option for them as it enabled them to live less stressfully and within a budget. If you have a source of income that would enable you to pay off a mortgage comfortably and in a short time, buying may be the better option for you as it will enable you to live rent-free. If you’ve just started working, you may also need to know whether you want to build your whole life around the area where you will buy a house. This is because moving is that much harder when you own a house and are not simply renting it. For someone who is just starting their career, therefore, renting may make more financial sense as it ties up less of your income.
Depending on your perspective, renting will have less responsibility than buying. This is because repairing broken things and paying taxes won’t be your responsibility. Because different states and areas have different regulations and requirements, making this decision should be dependent on your unique area. Owning your own home will also mean that in the case of accidents and things like weather damage, you are solely responsible for the loss incurred. If you are okay with this and can afford to bounce back with the help of insurance, then buying a house is for you. A statistic shows that homeowners spend between 1% and 4% of their home’s value on average each year on repairs and maintenance. This amount increases as the house gets older and for a home that costs $200,000, the amount works out to $2,000 every year for repairs. If you feel that you’re not ready for these figures, put a hold on buying a home.
With everything considered, there are pros and cons to both renting and owning. It’s often a personal decision to make at the end of the day because what works perfectly for one person may not work for the next. Do your research and make your decision based on what you are most comfortable with.