It is a common knowledge that the current housing and real estate industry all around the world is experiencing a crunch. That is why many couples, families and individuals who have planned to acquire homes and residential properties are now temporarily stalling their purchase plans until the situation improves.
While many real estate and homes are priced less costly, it can be troublesome to buy because there are many issues to settle, including falling general property valuation, security and liquidity depletion. These days when inflation is high, bank loan interest rates are soaring and cash reserves are depleting, it is really logical and practical to tighten belts and postpone any investment or acquisition transaction.
The decision to buy or to rent a home should be influenced by several factors. First, there is a need to assess your cash and spending capability. If you have enough savings, and every month, you have spare amount of money after allotting for all necessities, you can confidently afford to buy your own flat or home especially those on monthly installment basis. It is not safe to get such an investment if you cannot guarantee to yourself that you can have sufficient amount of money to shoulder monthly amortizations.
You should also look at the difference between the monthly rent and the deposit or monthly payments to banks. Usually, homebuyers prefer to buy rent-to-own homes because required monthly payments are almost always in the same range as the monthly rent for leased homes. Why would you not opt to own a home you are renting? Buying such houses is practical because it gives a sense as if you are renting; but after a few years, you will fully and legally own the home.
For a sense of security of tenure, buying a home is ideal. If you are scared of being easily evicted from your flat, you should opt to instead buy and own your own home, where no one can evict you. If you think you will not enjoy the location of the home as well as the company of neighbors, renting will be a more ideal and recommended measure. If you are renting your home, you can easily decide to leave the place and move to a better and more conducive one, whereas if you own the home, you have no choice but to endure and be patient for life.
Owning a home will spare you from residential market situations. Landlords will always set rents at par with the usual rates prevailing in the market. When demand is very stiff and high, expect your monthly home rent to go along with the climb. The good thing about this is that when demand is not robust, rental prices can also steep down. Monthly amortizations for acquired homes under installment have fixed prices. Thus, you are to pay a fixed cost even if demand rises or falls.
As you weigh the pros and cons of buying and renting a home, you should also ask yourself, ‘Which one will be more advantageous in the long term?’ Consider the mentioned factors before you make your important decision.
Julia Vakulenko is a licensed broker associate with Tampa4U.com Realty. She has one of the hardest working Tampa Real Estate team in Florida and also in2Va Team for Northern Virginia Real Estate .