Buying a property might very well be the ultimate benchmark by which prosperity and financial security is measured. Or is it? Although property ownership is one of the biggest financial decisions that you will make, you may be better off renting. If you are wondering why, then take a look at these reasons.
You Save Yourself Cost
There are a lot of costs that come with home ownership- that you do not have to worry about if you decide not to buy a house.
According to statistics, the average house costs ten times the typical salary of a full-time worker. It is therefore no surprise that the majority of home owners rely on mortgage arrangements to finance their house payments.
In the long run, buying a house might be pricier than renting. Although, you may consider that paying your mortgage over a period of time is better than paying rent to your landlord on a monthly basis, remember that the maintenance and upkeep of your house will amount to more expenses.
Technically, spending on the upkeep and maintenance of your house increases its value. However, home ownership is not an investment that exactly gives you a high rate of return. Of course, if you decide to eventually rent it out, then, according to experts at AXA, you must make your property attractive enough for potential tenants.
As an investment, the hope is that your home increases in value. If this does not happen, a drop in the value of your home means that you may not be able to sell it if you owe your mortgage lender more than the cost of your home because, eventually, you will be at a loss.
The bottom line is that not buying a house saves you a lot of financial stress and commitments. There are no mortgage repayments to worry about which means that you can afford to invest in other ventures with higher return on investment. You could even start a business.
You Are Flexible Enough to Move
If you own a house, you have comfort in knowing that you have a permanent location to call your own. You do not have to worry about being sent packing eventually.
When you give it another thought, owning a house can trap you in a location, and if you decide to leave, you will have to bank on selling it off quickly.If you like flexibility, then renting may be a better option for you. You are free to move easily without worrying about what to do with your property.
If you are wondering if you should buy a house or not, the decision should depend on what works best for you after weighing it on both sides. There is a culture that has been amplified over the last few decades which dictates that everyone should try to buy their own house, unlike the rest of Europe.
As the market has developed, this many not be a suitable approach for everyone, so depending on your job and financial circumstances, find something that works for you personally.