August 5th, 2015
The obligation of a mortgage can be uncomfortable for many people. However, it needs to be realized that there is no way to avoid paying a mortgage; except by paying cash when purchasing your property. Even when you are renting a property you are paying for your landlord’s mortgage. Simply put… a house will always consume housing whether they are owned or rented. But which one is right for you? To buy or to rent?
Let us for now set aside the favorable accounting treatment of owning and just focus on how owners have the benefit that they are paying down their own principle while households that rent pay down the principle of a landlord plus a rate of return for their rental.
The choices between buying a home and renting one are among the biggest financial decisions that an adult makes. Though the costs of buying are more varied and complicated than for renting… there are many added benefits which include feeling grounded, the decorative freedom that comes with owning and the potential for resale. We suggest that before making your final decision on whether to buy or rent, make sure to talk to a financial adviser and a real estate agent. The decision is very much dependent on where you are in life and both of these industry professionals can help you make the right one.