วันศุกร์ที่ 16 มีนาคม พ.ศ. 2561

First Time Buyer - Is Renting Better Than Buying Your Home?

When asked whether renting or paying a mortgage is best most people will automatically jump to the conclusion that buying a mortgage is obviously always the best to go. However, this is a view that has been installed in us over the years and it is far from necessarily being true.

There are many things you need to consider when looking for your first property and believe it or not it doesn't just come down to money.

Firstly, you need to คอนโด กรุงเทพ consider what you are expecting to use the house for. The key here is not to just think about today but to think about the foreseeable future. For example, are you planning on having children soon, do you want this property as a stop-gap or as a long-time home, would you want to modify your house?

You then need to look at how long you realistically see yourself being there. If you are at a stage in your life where employment is changeable or you don't have a clear path of where and what you plan on doing then it may make more sense to rent. The last thing you want to do is commit to a 25 year mortgage on a property that in 12 months time is in the wrong location for your new job or is not in the right area for schooling your new child. This is why you must always think of how long you expect to be there and what you expect to have over that period of time.

It is of course also very good advice to look at budget. In general renting is a lot cheaper than buying property. It is likely that your deposit for renting will be 4-8 weeks rent upfront compared to at least 5-10% of the entire property value when purchasing a house. On top of this there are very few charges associated with renting a property. You may possibly have to pay an agents fee which rarely costs more than a couple of hundred pounds but if you are intending on buying a property then there will be mortgage fees, legal fees, stamp duty, surveyor fees...The list goes on.

You then need to look at the long time affordability. Committing to a mortgage means that without fail you need to have available to you that monthly payment for many years to come. If you are in employment that is changeable or you think your financial circumstances could change then it is not advisable to take the mortgage route until things are a bit more stable. Renting, on the other hand, gives you a lot more flexibility. Most rental terms will only be 6 months long meaning that if you can afford a nice big house now then you can enjoy it and if your circumstances change you can very easily downsize within a matter of months with minimum commitment or hassle.

The key to answering the question or rent or mortgage is to keep it simple. Try not to think of pride, what other people are telling you or what society thinks and instead see what is best for you. The rule of thumb is that if you are in stable circumstances and know what you want and can afford it, then buying a house with a mortgage gives you the most long-term stability and freedom to do to your property what you wish. However, if things could change or money isn't quite where you'd like it to be yet then almost certainly renting is the best option for you. Remember, you can easily always move on from renting to buying but it's a bit harder the other way around!


ไม่มีความคิดเห็น:

แสดงความคิดเห็น