How To Decide If Buying Or Renting A Home Is Best For You?

Buying or renting your first home is a thrilling start for anyone. It can also be fraught with anxiety when you have two options, and you have no idea what the most sensible choice would be.  Do you look for property for Sale, or should you instead search for houses for rent?

We’ve assembled a few questions to help you along on your decision-making journey.

How long are you planning on residing in the specific city/town/suburb?

If you are eager to settle down and better yet, you know precisely which neighbourhood you prefer, buying a home might be for you. Not sure if you’re coming or going? Instead, hold off and rent a house until you are sure that you will be spending at least five years in a specific area.

Do you have a good credit record?

Your credit score doesn’t have to be perfect to qualify for a mortgage loan. Even if you hold a bad credit score, certain lending facilities would still consider your application. Keep in mind that just because you qualify for a loan, doesn’t mean you can comfortably afford the monthly repayment.

Have you saved up a deposit/down payment?

If you’ve already saved up for a down payment, that's great! Many lending institutions not only prefer but also demand an upfront deposit. It is the wisest choice in the long run as your interest rate should also be positively affected by a sizeable down payment.

Do you have access to an emergency fund for unexpected expenses?

Many homeowners are entirely caught off guard by the actual cost of owning a house. If you want to avoid the very stressful reality of living from pay check to pay check, make sure your emergency fund can comfortably cover at the very least, six months of expenses. Remember that life can throw a curve ball at any moment, and if you have to face the unfortunate event of retrenchment, the foresight of maybe losing your home too could cripple you entirely.

Why would I want to rent?

Home ownership is not for everybody. If your current job situation isn’t entirely stable, you might want to hold off on a purchase that requires regular income. You might also enjoy the freedom of knowing that nothing is tying you down and you can choose to relocate at your whim. Instead, leave the nasty surprise bills for your landlord to deal with!

Buying a home might well be the most significant decision of your life, and you should be 150% sure that you are purchasing for the right reasons and not because friends and family think it’s the best. If there is still any doubt in your mind, and you are not sure if you are quite ready for all the responsibility, instead search for houses for rent. Rather be safe than sorry.

When you are set to embark on the exciting journey of purchasing your dream home, go ahead and enter the property for sale into your favorite search engine and narrow down to your desired city/town/suburb. Have fun in house hunting!