Buy or rent a house? This may be one of the biggest financial decisions you will ever make. In the past, the answer to this question is definitely buy. But as people's lifestyle changed significantly, they now see renting as a practical choice. If you still want a place to call your home, here are some things you need to take note of:
1. It is still a better investment.
Your house may or may not appreciate over time, but it still makes for a safer investment. While yield may be higher in other investments like stocks, the stock market will not take you home when times get rough. At least when everything else collapses, you will still have your house. You can take this time to revamp and improve your house. This is so when the market is going well again, you will be able to increase equity.
If the problem is money, you can explore many other options. For example, if you are a resident or a practicing dentist, there are home loans specifically for medical professionals. Loans for other professionals like accountants are also available.
2. It can be income generating in the future.
Many young people today would rather rent because they don’t want anything tying them up in one place forever. They have grand plans of travelling around the world. But when you think about it, owning a house can actually help you achieve this dream. You can rent it out to finance your travels and other luxuries.
3. It gives you freedom to be creative.
When you rent, what you can do with your place is limited. You cannot be as creative as you want. While you can buy furniture and fixtures, you cannot break a wall or change the floors. Some will not even allow you to drill holes on the wall. This can be frustrating, especially when you simply want your house to feel like home.
When it comes to cost, you can come up with different arguments to identify which costs less in the long run. Many people will talk you out of it, but at the end of the day, living in a place that is yours gives a deeper sense of security and fulfilment.