When it comes to choosing a place to live, the age-old question of whether to buy or rent will invariably rear its head. Both options have their advocates, with people on either side of the spectrum often swearing that their way is the only way to go.
However, there are pros and cons to both. Deciding whether to buy or rent a home should depend on your personal situation, your priorities, and your lifestyle. While some claim that buying is the best option for the long term, others will claim that renting is actually the more sensible choice. If you’re unsure whether to buy or rent, read this guide to find out which is right for you.
Pros Of Buying A Home
Advocates of homeownership will often highlight the feeling of added security that comes with owning a home. Buying a property means that it is yours, and not your landlord’s, so no one can force you to move out (unless you fail to make your mortgage payments).
In addition, owning your home provides you with equity that boosts your net worth and gives you something you can leverage for other loans. You can also deduct mortgage payments from your taxes in most countries, and treat your home as an investment that can increase in value.
If you’re looking to start a new life abroad and purchase property in another country, buying is another way to increase your assets and expand your portfolio. One popular destination for buyers is the UAE, where a majority of the residents in places such as Dubai were born abroad.
While there are caveats, such as the fact that foreigners can only purchase property in freehold areas, online services such as Bayut exist specifically to help buyers navigate the process and acquire their own piece of property in one of the fastest-growing regions in the world.
Perhaps most importantly, homeownership allows you to live how you please, without having to ask a landlord whenever you want to redecorate or remodel. Some would say that that is a priceless feeling.
Cons of Buying a Home
However, buying a home is not without its flaws. For one, buying a home will reduce your mobility considerably, as you will feel “tied” to the property and will be unlikely to afford a move without going through the lengthy process of selling it first.
Buying also means that you are responsible for the upkeep of the property, rather than a landlord or housing association. Those regular maintenance costs can amount to thousands of dollars every year, a significant cost that few think to consider.
Pros Of Renting A Home
Renting a home comes with the promise of greater freedom. If you want to drop everything and start a new life in another country, you will be able to do so in an instant, without being held back by a hefty piece of property.
In addition, your maintenance costs will be low as a renter, while you won’t have to pay property taxes. You also have the luxury of knowing exactly what your monthly outgoings will be every single month, which you can’t have with a mortgage.
Cons Of Renting A Home
There are, of course, some drawbacks to renting. The biggest is the fact that you are spending money on accommodation without having a tangible asset to show for it. You are essentially paying for somebody else’s asset every time you make a rent payment. In addition, renters have less control over many aspects of their living situation. For one, the landlord can choose to increase the rent at any time (although most countries do impose legal limits on this).
You will also have less choice when it comes to customizing your living space, as rental contracts often stipulate that you cannot make any lasting changes to the dwelling. There are tradeoffs for both buying and renting. Both work best for certain types of people, so consider which of these issues you care most about and make your decision accordingly.
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