How To Decide Whether To Buy Or Rent

A key focus of my blog is Financial Literacy/Money. Everyone needs a place to live and an important consideration if you’re worthy of a mortgage is whether or not to buy or to rent. There are considerations for both, and sometimes people buy before they’re ready. The following contributed post is thus entitled, How To Decide Whether To Buy Or Rent.

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Moving home can be an exciting, yet equally stressful time, and of course it always depends on your reasons for moving in the first place, but aside from looking for a new place, getting rid of the current place and then actually having to pack up your stuff and move, there’s also the question of whether to rent or buy.

Of course, there’s no right or wrong – only what works for you, but it’s important to take into consideration your own needs and circumstances when deciding on which option is right for you.

So, in this post we’re going to share with you some of the reasons to consider renting or buying with a list of points for each so that you can decide which one is better for your needs right now.

Renting:

Less paperwork:

One of the most appealing things for most people who rent is that there’s certainly a lot less paperwork to deal with compared to buying. When you rent a place, you typically sign a lease, but this is nothing more than a standard document containing a few pages – unlike with buying where you have multipe things to sign and forms to fill out before you can even pay your deposit.

It gives you more freedom:

Although even if you buy a house you can still move anytime you want to, it definitely takes a little more in the way of planning when you own your place compared to when renting where you can simply give the required notice and hand back a set of keys.

You’re not responsible for repairs:

When you rent your place, the landlord is responsible for making sure everything is in working order and any repairs needing done to the property have to be carried out at their expense as long as you didn’t cause the problems or need for repairs yourself.

Buying:

You own the property:

Of course, buying has plenty of upsides just like renting, and one of those is that once you’ve paid your mortgage off you own your property outright, which definitely appeals to those who want to use property as an investment or who don’t want to be paying someone else’s mortgage each month. If you’re considering buying a place, then you’ll obviously need a mortgage and can have a look online for things like an itin mortgage lender to see what type of mortgage you could get and what would be suitable for you.

You can decorate as you wish:

Another great thing about owning your place is that you don’t have to ask permission from a landlord if you want to carry out any renovations or decorations, so you can make the place your own style as much as you like. It also means that any work you do in the place is something that you’ll get the full benefit of and won’t be leaving for someone else to enjoy at your expense.

It can be cheaper than renting:

Although there are always exceptions, buying is typically cheaper than paying rent each month.

Should You Buy To Rent Or Buy To Let As A New Property Owner?

Two of the key focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. There’s a lot of power in buying property and getting into the real estate game. When you buy property, you have the option of living in it, or ‘letting’ (renting). The following contributed post is thus entitled; Should You Buy To Rent Or Buy To Let As A New Property Owner?

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Recently we discussed some of the considerations that you need to make before you decide to invest in property. One of the most important choices is whether you buy to rent or buy to sell. Each poses different advantages and disadvantages. So, let’s explore each of these possibilities and think about which one is right for your needs.

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Buying

The first option is to buy and the main benefit is that you can immediately see a financial boost from this decision. At most after buying, you will need to keep the property for a few months. After that, you can resell and hopefully gain a substantial add on to the price you paid.

The other big bonus of buying to sell is that you will not need to worry about the responsibilities that come from letting out a property. Becoming a landlord is certainly not going to be for everyone and the issues that you’ll face can cause a great deal of stress in your life. By making a purchase to sell almost immediately or at least in the first year, you can cut this issue out completely.

That said, there are other problems. If you invest in a new property, then you will likely need to make this investment with a loan. The problem here is that even after you sell, you might not see a significant gain due to the amount you’ll need to pay off in interest to cover the loan.

Instead, you may be better off purchasing a fixer-upper. The issue here is that you can end up with a money pit. As such, you will need to be very careful about choosing the property before you commit to a purchase. There’s a thin line between a property that will be great for flipping and one that will leave you in debt.

Letting

The alternate possibility would be purchasing a property to let. The big benefit here is that you’ll have a long-term additional income for your accounts. You’ll get money every time rent is due which can provide a nice cash cushion.

However, you will have plenty of responsibilities including ensuring that a property is safe. For instance, you will need to make sure that you invest in the right equipment from servicefireequip.com. As you might have guessed, this also means more costs and it’s not just about the changes you will need to make to any property you invest in.

You’ll need to pay for a property management team as well. The good news is that by doing this you can get what is essentially going to be a hands-off experience when investing in property. You won’t have to worry about issues with completing fixes, showing new tenants around or accessibility. All this will be covered by your management team.

We hope this gives you an idea of the two main options when you are investing in property that you can consider. Using this advice, you can decide which one is right for your needs. You can learn more about buying to rent on theguardian.com.