Why buy property rather than rent?

Buying your own property, for most of us, will be a long process. Some people will be put-off because of this, as they will find committing to a project for such a long time will feel very daunting.

For others, it might be their financial situation just doesn’t give them the opportunity to step onto the property ladder, these people would normally rent.

Now renting isn’t a bad choice and do have some plus sides. These will include:

• Not having to be responsible for maintenance of inside and outside of the rented property, as the landlord is normally liable for fixing anything that goes wrong.
• The monthly costs can be comparatively lower than paying a mortgage.
• You can relocate quickly if you choose without having to wait extensively for the sale of your current property.

Some of the downsides of renting are:

• Not being able to deduct your rent monthly payments, and you can’t control any increase either.
• Each monthly payments you make to the landlord will be gone and can never be redeemed as equity.
• You can be evicted and left homeless if you don’t keep up with your payments.

In the long run, buying your own home will be the wiser choice as it will be more rewarding, both financially and personally.

The financial reward comes from very likely-hood of your home’s value going up over time. The basis for this will boil down to basic necessity.

People will always need a house to live in, and when there is demand for houses, prices will increase.

Also, with each payments, you’re reducing the amount you owe on your mortgage, which in turn will also reduce the interests that you need to pay each month there-after.

The personal reward will no doubt come from the feeling of achievement, of the many years that you had invested yourself in, and realise in the end that you own your very own home.