Welcome, if you just have moved into new place!

Congratulation, if you just have started a new family – the newly marriage!

Proud of you, if you just have grown your family members! We know that you might be looking for a very nice place to prosper your family life. Here are some tips for you to decide if you should rent a house or own a house. There are pros and cons to renting a property, just as there to owning a home. Both options have their own advantages and disadvantages, for example renting allows you more expendable money in the short term, while owning a house gives one the sense of security as it is considered a long-term investment. Let’s look at all the pros and cons of renting and buying a home. This will help you make a well-informed decision of what will suit you, right now.

Advantages of buying a home Owning a home offers the long-term benefits of security, equity and potential growth in personal wealth The value of a home will appreciate over time and if you decide to sell, you can earn a profit off the sale. When you buy a house it becomes your legal property, which allows you greater freedom in its use without restrictions often enforced by a Landlord. Being a Homeowner allows you creative control of your property. You can alter the property, including decor changes, landscaping and renovations, to suit your needs and your style. You have the option of buying to rent which enables a Homeowner to generate income from renting out the property. This income can be put towards the home loan. Being a Homeowner who makes repayments on time can improve your credit history. To name a few, good credit history means lower interest rate and bigger loan you may obtain in future borrowings. You have the option to use your home as securities to borrow some money during urgent needs or to pay for major purchases.

Disadvantages of buying a home Being a Homeowner comes with huge financial responsibility including bond repayments and regular house maintenance. There are additional costs to homeownership and these usually include rates, taxes, insurance, and maintenance for which the Homeowner is responsible. A Homeowner runs the risk of not making any profit through resale. This is often caused by economic factors such as a recession or high interest rates, or simply through a particular location becoming less desirable. A Homeowner has less mobility when it comes to being able to move home than a Tenant who rents on a short-term basis. A Tenant can leave a property after fulfilling the notice period, which is usually one month. However, a Homeowner is likely to be dependent on selling their home before being able to buy a new one, and therefore it might take longer to be able to move homes once the decision has been made to do so.

Advantages of renting a home Renting a property allows more flexibility than owning a home. This is ideal for those who could be faced with sudden changes such as a job relocation. Renting requires no long-term commitment from a Tenant, and is the best option if you don’t intend on staying in one place for a long time. As a Tenant, there is the possibility of living in an area in which you could not afford to buy. Moving out is easier for a Tenant than a Homeowner as there is no stress of finding someone to take over the lease, or finding a Buyer to purchase the property as this is the responsibility of the Homeowner or Landlord. After paying rent, a Tenant may have additional money which they can use to invest elsewhere, whether it is saving towards buying a house or investing in the business, and need not worry about putting additional funds into a home loan.

Disadvantages of renting a home A Tenant is bound by the rules of the lease agreement, which can impact the freedom to use or renovate the property. You cannot make changes to a rented property without the consent of the Homeowner. Renting offers no wealth creation or return on investment since the property will never legally belong to the Tenant, and instead, the Tenant is paying towards the Homeowner’s home loan. When renting a property, you will have no control over annual rental fluctuations which are directly affected by inflation. There is no guarantee that a lease will be renewed when it expires.