Renting vs. buying: When it makes sense to buy a home

Last Updated on September 26, 2023 by Kravelv

A big question that many people are unsure about is, “should I rent, or should I buy?” The reality is that there is no single definitive answer. Instead, it depends. Let’s look at which option is the best fit for you by considering five different considerations.

1. Are you new to the area?

If you’ve just moved to the area, the city, or even the country, you’ll want to get a stable home as quickly as possible. You might feel like you’re totally in love with the place and want to move there permanently tomorrow. In this case, buying might be in your best interests.

On the other hand, you might want to wait a few months to get to know the market and the expected cost of properties that meet your preferences, such as having a certain number of bedrooms and bathrooms.

2. Consider your plans

Thinking about where you want to be in the future can help you make sure that you get a place that fits what you’re looking for now and over the coming years. If you are looking at a place for the next year only, it could be best to rent. But if you want to make an investment and potentially sell your home for more than you bought it for, or stay in it several years, then buying is the best choice.

Perhaps you want to settle down now. You’ve finally found a location where you want to put down some roots and maybe start a family. It’s here that you see yourself building a promising career. Obviously, in that case, it would make more sense to buy, and the Kenya Property Centre makes it easy to see what properties are available.

3. Consider your finances

Renting may seem easier on your bank account than homeownership, but is it? When you add up the monthly rent, utilities, and other rental costs, you’ll likely find that mortgage is a lot cheaper overall than renting. However, if you have no furniture, you’ll find that a furnished apartment is cheaper, at least in the short-term. Furniture is expensive, so even if your mortgage is cheaper than renting, you’ll soon find that the lack of seating isn’t worth the savings you’re making. This is why many people look for furnished rentals chicago and furnished rentals in other cities as an option for when they have no furniture of their own.

4. Weigh responsibilities vs. freedoms

Yes, buying a home comes with responsibilities. It’s now your job to fix anything, versus calling a landlord to do so if something goes wrong in the house. On the other hand, you also get many more liberties with property ownership.

As anyone who rents will tell you, this is practically a minefield. And, depending on the type of landlord you get, it might be challenging to get even the smallest of changes to the home signed off. Yes, buying a home brings a lot of responsibilities to the table, but it also includes the wonderful freedom to paint and make other changes to the house.

5. Think about the economy

Whether renting or buying is what you choose, always look at the economy first in the area where you plan to live. Then you can assess what option is best from a financial perspective and feel good about doing what makes sense for your future security.

By owning a home, you have an investment and an asset that is stable. Renting will save you some cash, granted, but when you consider how volatile the rental market can be, wouldn’t you want something a little more grounded?

Over to you

So, what is it going to be? Will you be a renter or an owner?

1 Shares
Share
Tweet
Pin1
Share