“Should I buy or rent an apartment?”,   if anyone has ever asked you that question, then you most likely found yourself pondering on a lot of factors that could help them make smart decisions. A straight forward answer may lead to weak outcomes because various factors like age, career, finances, neighborhood, short term, and long term goals need to be considered. For instance, the fact that a person can afford a house doesn’t mean their present situation requires one.

Gone are the days when a buying home was a criterion for success because if not well managed, an expensive home can become an albatross on its owner’s neck during difficult periods. Nevertheless, a good number of people have benefited from having their own homes.

A logical way to find out the best option for you is to indulge in self-analysis and consider your needs and wants in the nearest future and your long-term goals.

Also, considering some of the advantages of buying and renting may help you conclude:

Here are some advantages to renting a home:

1. It costs less to rent a home than to buy one. You will have to have almost ten times or even more to move into a newly purchased house.
2. As a tenant, less responsibility falls on you. You don’t have to worry about repairs or property taxes because, technically, the property owner is directly responsible. Tenants have less of a tax impact on their finances. A homeowner may have to spend money on insurance, yard maintenance, and exterior maintenance.
3. As a tenant, you are open to more relocation options. A need to relocate for any reason at all wouldn’t cause too much worry.
4. The cost of the move-in is lower. You may not have to make any down payment or less deposit.

Here are some advantage to buying a home:

1. In some instances, the cost of ownership can be less than renting.
2. In cases where mortgage payments are made on time, homeowners can achieve a better credit rating.

Should you buy or rent an apartment?

The first things to consider when deciding to buy or rent an apartment are your financial capability and life goals. It would be a great idea to map out your life goals for the five years at least or a decade. You will need to answer questions like what you want to do with your life and what you want to do or achieve in the next years down the line.

You should consider your life plan, location, job, and the kind of lifestyle you envision. For example; if you desire to be an engineer, it makes more sense to live in Silicon Valley than in a town in the countryside. 8 Best Cities to Move to in the United States. If you haven’t made a stable career path yet in your field, you can better off renting a house than buying one.

If you have plans to settle down and have kids and want to spend the next years in your desired location, once you are financially capable with a job that doesn’t require you to relocate anytime soon, then buying a house might be the best option for you.

In the end, it boils down to your present goals, work, and lifestyle, and the one you envision for your future.

Not everyone who is financially ready needs to buy a house; these could be due to different factors from career to hobbies. Your job might have you changing locations often, and if you have a family, you may want to move with them.  If you are a big fan of traveling, buying a home and being tied to that area may not be fascinating.

According to financial advisors, you may be taking a wrong step by buying a house if you do not intend to stay there for the next seven years, which is the least. You should only do this if you choose to sell the house later on but do your calculations right to be sure that the house’s price would appreciate. Don’t miss out! join our newsletter here for more insights delivered straight to your inbox each week.

In the end, it depends on where you are in your career, your finances, and how long you intend to stay in a particular city.

Ready to buy or rent an apartment? Start your seamless journey with us today at Pelow.