At some point in your life, you will be facing an important yet controversial question as to whether you should buy or rent a house. You might feel as if buying a house right now isn’t a good idea due to the rise in interest rates, which has made a home-buying project far more expensive than before.
On the other side, you might also be thinking that renting a house might not be the best option as rents are surging, and it might make you feel as if you are throwing money down the drain.
Financial Aspects
If you are renting a property, then the financial costs are pretty simple, as it will be the amount of rent that you are paying to live there. For instance, if you are in Long Beach, you might want to opt for Long Beach short term housing, and pay a fixed amount of money every year to live there.
There are other factors that you may also want to consider when renting property. Depending on whether your landlord includes certain things in the rent payment or charges them separately, utility bills are one such factor.
Now, when we think about buying a house, we often think about the purchase price of the house – but – there are other expenses too, such as the closing fees, property tax, the lawyer fees, which is the amount that you pay to the solicitor to look at all the paperwork, the title, etc.
When it comes to buying a house, you will also have to pay a valuation fee, which is the amount of money that you have to pay to the mortgage lender to value the property. In most cases, you will also have to deal with repair and maintenance costs that a lot pf people forget to include when they go home-shopping.
As a rule of thumb, you should calculate 1% of the property price every year to cover all sorts of maintenance and repair. So, you will certainly want to assess your finances before deciding whether to buy or rent.
When is Renting Better than Owning?
When it comes to renting a house, there are several benefits, such as the ease of paying monthly rent and not having to deal with any issues, such as maintaining appliances, doing home repairs, paying the mortgage, paying taxes, etc.
Renting allows you to move to any place of your liking without having to worry about mortgage and property taxes, which includes the benefit of living in a city with slightly higher living costs.
You will want to consider home ownership and the associated costs from a broader perspective. If you like to travel and explore different areas, then renting is definitely for you. You will also consider other things that are important to you in your day-to-day life.
If you rent an apartment in a city where you are surrounded by great infrastructure, it could actually be a better choice for you, as you will be able to live in a great city without having to pay a massive mortgage and being able to invest your money on things that matter rather than focusing on buying a home.
