Purchasing your own house is one of life’s biggest achievements. Years of physical and mental struggle, persistence and hardship coupled with a growing savings account leads to the moment of buying your very own house. While permanently taking ownership of your own place seems like life’s most lucrative deal, it has been observed that in some cases, renting proves to be the more profitable option, and it continuously increases in popularity. In this article, we’ll take a look at what would be the better choice, buying or renting a home.
Source: Chris & Jamie Buy Houses
According to Abodo.com for decades in the past, the option to buy a house has been the more profitable option rather than renting. Financial analysis showed that for a working-class citizen, paying weekly/monthly rent for a lifetime equated to the expense that would cover the costs of purchasing a house. In the past, home prices fluctuated and often crashed, and even went in favor of potential buyers the next day! Getting a good deal on the house was common. Therefore, commoners rightfully chose to purchase and never pay rent again. Record low mortgage rates and seemingly inflated renting market swung the pendulum in favor of property purchases.
Now, let’s evaluate whether you should buy or rent a house.
Source: Expatica
When you know, you should buy
Don’t get me wrong. I do not mean to discourage purchasing property with the lines I’ve written so far. Buying your own house is still one of the most secure and lucrative investments in today’s market. According to Landlordtips there are certain factors to be considered. However, there are certain factors to be considered. If you are in possession of a large amount of money, and you find a great deal, i.e., a great apartment in a good location at a significantly reduced cost, and you are able to complete full payment upfront, or within a short span of time, you should definitely go with purchasing. This is because you will not be slapped with the terrifying prospects of paying large sums of loan for the rest of your life. You will clear off any payment while peacefully living in your own crib without worrying about rent ever again.
Source: Turnbull Hill Lawyers
When you know, you should rent
This part is relevant to the middle-income earners that are saving up their hard-earned money to pay for their home. If you don’t have a big bank account and rely on your salary only, consider taking a loan. With a loan comes the risky mortgage formalities, a huge interest rate which may double the initial price of a property and a lifetime of mental strain until you finally clear your debts (which you may not in your lifetime). Purchasing does not seem lucrative for such an individual and if you do a long term cost analysis, you will observe how the monthly installment fees are fairly larger compared to the rent you’d be paying.
However, tides have turned since, and these days purchasing seems to be a hassle now. Mortgage rates have skyrocketed, loans leave you with the trouble of monthly payments with interests, including property prices that have increased significantly. In the meantime, house rents have also gone up but not nearly as much when compared to any property prices. Certain areas of a city still boast a cheap renting market that will lower your costs.
Source: HomeAdvisor.com
Furthermore, high mortgage rates leave you with a lifelong headache until you clear the payment while the ridiculous interest rates may lead to you paying twice the amount that you would have paid initially. When considering the pros and cons of purchasing as opposed to renting, you will find that you will not only pay a high price for purchasing but will also possess the risk of losing your sweet home along with a big portion of your salary associated with interests, which is no different from paying monthly rent for the rest of your life. These factors show that renting/leasing is the more secure and profitable option than its counterpart.
We need to evaluate every penny we spend with regards to our social status, income, and bank balance. Likewise, whether or not purchasing a house or renting one is ideal for you depends on your present status as well. I hope this article will help you in your pursuit; meanwhile, you could take a look at some of these houses available on Sea Pines homes & houses for sale. If you are interested in buying a home, check houses for sale on thepattisallgroup.com.
