When living independently, your main choices are to rent an apartment or buy a house. The usual progression is for someone to rent while they save enough money to buy a home. But nowadays, some young people are staying with a rented apartment rather than moving. If you are reaching that decision point, here is a look at both sides of the argument:
Staying With The Familiar
You most likely already have an apartment, so you should be familiar with the main advantages of renting one. One is that it can be relatively cheap. If you are rooming with other people, you most likely share the bill with others, which significantly reduces the burden of payments.
Renting is also ideal for those who need flexibility. For example, if your job is not assured or you only have a limited contract, you might want a place to stay that allows you to leave when necessary. Renting removes one of the biggest headaches that homeowners face: maintenance. It is the landlord’s job to take care of your apartment. If something goes wrong, you should contact them as soon as possible.
The most crucial problem with renting is that you don’t have full control of your place. There are usually rules you need to follow, like not keeping pets or something similar. Additionally, if you are not careful, your landlord can raise your rent out of the blue.
A Home Of Your Own
Buying a house is a significant decision, but it can be gratifying. The main reason why you will want to buy a home is that it builds your equity. This is the value over time of your house. Instead of your rent payments slowly draining you of money, the payments you make towards your mortgage add value to your assets.
Additionally, being the owner of your home gives you a certain level of freedom. No more need to ask about making changes, and you can do anything you want. You can even have pets. There is also a chance to earn a bit of money. If you have an extra room, you can offer it up for rent, and you can earn some cash on the side.
The main trouble with buying a house is purchasing. You will have a hard time finding a good home at specific price points. An excellent real estate agent will be able to get you a good deal, but even that is limited. It is not only the first purchase price that you have to worry over.
Additional fees can make buying a home more expensive. These include insurance payments, property taxes, and even maintenance fees. If you don’t have a solid financial footing, this can quickly drag your finances down, so you need to be careful.
Where you live will affect many things, from your finances to your relationships. It can seem like one type of home has an advantage over another, but it all depends on the current condition of your life. Evaluate everything and decide whether renting or buying will best fit your needs.