We know there is never an easy answer to this.
For one, it depends on your finances. Two, the neighborhood you’re looking at. Three, the current real estate and mortgage market, and last but not least, your future plans.
You may be thinking, “if I buy, at least I’m paying the same amount of rent money into actually owning a property”, which in turn, means building equity in a home for yourself. But it really isn’t as simple as it seems.
So to help you figure out if buying or renting is the next step for you, we’ve narrowed it down to only two questions that you could (more so, should) consider.
Are you ready?
We’re not just talking about a steady paycheck. If you’ve got a decent amount of money set aside for your savings every month, great! You’re already on the right track. BUT beyond having that financial consideration, home-owning also takes a big bite into your social and professional life. This means:
- Being more selective with the events you attend, especially ones that may cost a bomb.
- Planning your holidays down to a tee (financially).
- Cutting down on some of life’s greatest pleasures (shopping, partying, technology, etc).
- Having to think twice about switching careers, or even potentially moving far away.
Of course, these are just some factors that may come into play. Depending on your priorities, these considerations may not be a big price to pay. However, becoming a homeowner before you’re fully ready could lead to costly consequences.
How long are you planning to stay?
Say you’re in your early twenties. Career and romantic opportunities find their way to you. Now, you’re in a rut. Do you move? Do you not? At this point, you’ll realise that where you choose to stay is just as important as how long you plan to stay.
That’s because mobility doesn’t come cheap. On one hand, if you foresee yourself staying put where you are for at least four to five years, buying a home would be a good investment. On the other hand, if you value freedom and mobility at this point in time, it would be more cost-effective to rent.
Alternatively, many have also bought homes only to rent it out, or as we Malaysians describe it, ‘let the house pay for itself’. Not a bad idea especially in the long-term. Might be worth a second thought if it’s only for short-term (even if you do find a tenant). This is simply because the rent doesn’t always necessarily cover the mortgage and other expenses.
So what do you do!?
As we mentioned earlier, there is no right answer to this. Whether you’re looking to buy or rent, everything depends on individual factors and priorities. Even if you decide to rent, it doesn’t necessarily mean you’re making an unwise financial decision. After all, you’re paying for the security and comfort of a roof over your head.
If you really want to get your money’s worth, you can either buy or rent a place you feel an instant connection with. The PLOT app can help you there. By simply downloading the app, PLOT can connect you to the right homes at the simple tap of a button.
Download PLOT on Google Play or Appstore today.