MY MEDALLION
Is buying a house really a better choice than renting one? For as long as we can remember, there’s been an ongoing debate on whether it’s more affordable, practical or even logical to become a homeowner at a young age – so we’re going to do our best to end the argument once and for all. Please keep in mind that there are many variables to cover, so be sure to apply these principles to your unique lifestyle and budget. But here you have it, these are the many different reasons why people choose to rent and to buy, looked at through a millennial’s perspective.
Why rent?
First things first, property taxes. Renters are not required to pay these separately, as it’s worked out in their monthly budget. Even when you buy a property, there are monthly mortgage payments, taxes and surprise charges that add up – one big one being maintenance charges. If something happens to break down in your rental, it is usually the landlord’s responsibility, which is not the case when it comes to homeowners. And last but not least, there’s a ton of flexibility when you rent. Meaning, you will not be tied down to any specific location, city or country, you’ll be able to move as freely as you want, and settle down when the time is right.
Why buy?
The best thing about buying a property is having a fixed-rate mortgage that doesn’t change from month to month, which gives many homeowners a sense of security. And the second best thing is, the ability to do what you want to do with your own space. Most renters cannot paint, remodel or decorate their home as they wish. And it’s also nice to know that you have a place you can depend on, and not having to worry about where you might be living in a year.
The market and where it’s heading
It used to be commonly accepted that buying a home is an investment for the future, however many market specialists these days beg to differ. They’re saying, if you’re planning to own a home for more than 10 years, it may be better to purchase, but if you’re having trouble seeing that far into the future, it may not be for you.
Which costs more in the long run?
Money is the biggest factor when it comes to making the decision to buy or rent. Studies prove that the cost of property and land significantly increases every year, meaning, after purchasing, the investment made will also significantly increase. However, this does not account for the property taxes, damage costs and burden of selling your place in the future. Because of the initial high costs of buying a home, it can take several years to actually notice the money saving benefits. So before signing any contract, take a few hours and think about the money you’ll have to pay every month.
How to pick the best rental for your lifestyle
While the perception of property renting leans towards a “trial and error” type of industry, it’s actually a lesson in adult responsibility. If you do your homework and gather the right documentation beforehand, you’ll know exactly what you can spend and what to expect during the process. Just make sure to meet/have a conversation with your landlord, the previous tenants and read through your lease with a fine-toothed comb before making any decision.
With our years of experience, we’ve come to the conclusion that if you’re on the fence about buying a property, renting is probably the right fit for you. Purchasing a home requires a ton of dedication, hard work and planning, which most millennials seem to run away from.
If you have any questions about renting a property, please take a look at our website, we’ll be happy to help you make an informed decision!
