Which side is the grass greener on?

The constant debate between buying and renting has been there since the start. Homes are often looked at as a need and sometimes a luxury, but how do we know what’s truly right for us, at all the different points in our lives?? We’ve discussed, debated, searched, and in the end, we came to this conclusion! 

 

BUYING: 

Oh, hear the cheers for your independence! Buying a home is known to be one of the biggest steps to take in adulthood. (Some might say the title of “The Biggest Step In Life” should go to the act of getting married, but that’s a topic for another day: Buying A Home vs. Getting Married: Which Comes First?). With this in mind, many people are afraid of buying a home. After all, it comes with an extremely long-term commitment  (Up to 35 years ?  which is let’s face it, much longer than most celebrity marriages these days). But there definitely are benefits to be had as well! 

 

Buying a home gives you all the privacy, freedom, and control your little heart desires. Paint the whole house blue or nail every wall with your favorite art piece. This world is your oyster and no unreasonable landlord is going to stop you from doing otherwise! That on its own is already a convincing argument, but if you’re still not convinced, here’s another reason why buying just might have the upper hand. Buying a home especially in a growing and thriving community will definitely see appreciation in the future. Think of it as an investment (one that’s likely going to outperform the average Fixed D). You can either sell it off at a higher price than you’ve purchased or rent it out for side income or cover your installments - heck, you could even do both! Either way, you’ll be able to get some money from it, yay!

 

 

RENTING:

Now, this fella is for all you people who have commitment issues. You have a lower commitment as your rent contract usually lasts for a year or two, and that means you’ll have the freedom to move as many times as you’d like - time to try out all those different neighbourhoods!. It’s pretty much a situation that you’ll have in control with a much much lower entry cost. 

 

When you rent, your landlord is to cover all maintenance and repair fees and that’s a nice burden off your back. Because when you own your own home, you’ll need to keep in mind that there will be some additional MISC charges that you’ll need to fork out when things get spoiled.

 

Renting also comes with lower upfront costs which means less of a hole in your savings account, initially (check out our article on upfront costs here for a full list of things you’ll need to pay for when buying your home). So when renting, you’ll be able to avoid all of these costs and only pay for your rental fee, utilities, and a first-off security deposit of a month or two worth of rent. But keep in mind that the money that goes into renting won’t get you any returns, i.e. rental is an expenditure, not an investment!

 

Essentially, the verdict on whether buying or renting trumps the other really depends on your current lifestyle and preferences. While we all dream of having a home of our own to do as we please, sometimes our current lifestyle does not permit us to do so. So while you weigh in on all of the variables, remember to keep an open mind on things! Don’t feel the need to buy a house because someone is forcing you to, but don’t make the mistake of rushing into rental and spending all that hard-earned money either. Instead, do it at your own time and pace. Weigh in on your commitments, future plans, and current happenings to see if buying a home of your own is going to be beneficial to you!