Rent or buy, which makes sense for you?
BY READERS DIGEST
1st Jan 2015 Property
When it comes time to move into another property, it may also be time for you to decide whether you want to rent or buy - but which should you go for? Here are some questions you might want to ask yourself to asses your individual situation.
What is your money situation like?
Renting a property can often seem like throwing money away, as your rent just goes to pay off someone else’s mortgage each month. On the other hand, should you lose your job or find that you cannot afford your rent payments, you are able to move out and find somewhere cheaper with the minimum of fuss. Tying yourself to a mortgage means that you really need to be secure in your finances and know that you will be able to afford to pay your mortgage payments whatever happens.
Is your life settled?
Take into account whether you have the job you want for the foreseeable future, whether you have children or will be thinking of having children in the near future, and if it is likely that you will want to go travelling any time soon. All of these things can still happen after you have bought a property, but they do become more difficult. Buying a property is generally best when you have settled down a bit and know that you are where you want to be for a long time to come.
Do you know where you want to live?
If you have always lived in the same place and know that you want to stay there, then this question is already answered for you. However, if you are still looking all over the country at places you might want to live, and haven’t definitely settled on a location, take your time and rent for a while before you decide to buy. Once you buy a property in one location, you are stuck there for the foreseeable future, so you should know that you do want to stick there.
Are you comfortable taking care of a home?
As a renter, if something goes wrong then all you need to do is call your landlord and they will get someone to come and fix it for you. As an owner, anything that goes wrong in the house is your problem, and you will have to get it fixed on your own. If the idea of calling an electrician or dealing with leaking pipes gives you a panic attack, then you probably aren’t really ready to handle the upkeep of a home on your own. Remember that you will get used to taking care of things on your own, though, and try not to let this be an overriding factor forever, or you might never choose to buy!
Ultimately, it's down to your own personal circumstances whether you choose to rent or buy. Think about it carefully, and make sure you're making the right decision for this stage of your life.