Sometimes, it isn’t easy to decide whether you should rent or buy. However, lots of people may think that buying is better because renting is only about expenses. Then why not buy a home then? So that you will watch how the value of your property grows. To make a decision, you must also consider personal aspects, for example, what is more, important to you – having freedom or control.
Comparing buying and renting
First of all, we should compare costs.
Most landlords ask to pay rent for the first and last month when signing the contract. In some cases, the landlord may also ask for a deposit to insure against damage caused by the tenant. The average cost of renting an apartment in Ireland is 1200-1600 € per month. Before signing the contract, check if the rental price includes payment for water, electricity or the Internet.
But when buying real estate, be prepared for the inevitable “hidden” payments. They can be an unpleasant surprise if you are purchasing a property for the first time.
Difference between buying and renting
– Buying a home is a considerable investment in your future.
Over the years, your home becomes more and more valuable. If you wish, you will have the opportunity to sell the property at a price exceeding the purchase price. It is better to do so after 5-10 years after buying in at the first stages of building.
– Maintenance costs
Buying a home isn’t just about making monthly mortgage payments. Over time, housing will require additional investments, for example, to repair the door, to fix the roof, to buy a new heating boiler, and so on.
But when renting a home, you do not need to worry about some of the additional costs since the house owner or apartment owner will be responsible for them.
– Renting is a freedom
One of the main reasons why many people these days decide to rent rather than buy is freedom. Many do not want to be stuck in a specific location. If you’re going to travel, are unsure about your place of work or plan to move soon, then renting a house is exactly what you need.
Pros and Cons of buying and renting
The pros of buying a home
– The ability to improve your home according to your taste
– Long-term investment
– You are the one who can decide what to do with your house
Cons of home buying
– First instalment
– Possible financial losses due to a fall in the value of housing
– Various additional costs when buying and obtaining a loan
– The ability to be free
– No responsibility for necessary repairs
– No need to worry about falling property prices
Cons of renting a home
– The owner may suddenly want to sell a house
– No capital is created for the future
– You may have to move several times
Written by Bader Albader, market researcher.