Rent vs Buy - The Housing Market Has Made Your Choice
The purchase of a home is the biggest financial commitment made in most people's lives, and is therefore one which must be worked out thoroughly with the most rigorous diligence. Everybody appreciates a sense of ownership, especially when it comes to the place they spend the most time, and that contains one's possessions.
Security is a paramount concern, the security of one's self, and the security of all which is chosen and purchased throughout one's life, including the precious gifts we receive for our wedding, birthdays, baby showers. Few undertakings impart such a sense of security as does ownership of one's habitation.
A mortgage is a hefty undertaking. A sizable portion of our income is dedicated to securing our own dwelling and the upkeep of this property. It is a financial commitment not for the faint of heart. The rewards, however, are innumerable. Complete control over the layout and furnishings, without the fear of losing one's deposit for making unauthorized renovations, and at the same time not bearing a complete financial loss for making improvements in the property. Why would someone wish to install designer appliances if we cannot recoup the investment of the increased valuation of the home? As a renter, anything "installed" in the apartment by the landlord or tenant, is now property of the landlord.
Now, if one is unsure of the permanence of one's current location- perhaps you are highly mobile in your occupation, and are looking at probable relocation within ten years, then renting may be the best option. However, if you are more comfortable committing to a specific geography due to occupational, community, or familial ties, then it may be less financially burdensome to consider making the commitment to a mortgage.
In a well researched article published recently it can clearly be shown that in most circumstances, if one is to be stationary in one area for any time longer than five years, it is more financially prudent to commit to the purchase of a home. The price of a mortgage is predictable and sedentary, while the price of the rent can fluctuate greatly due to market volatility, meaning that generally the landlords can revise the rent at their own discretion at the termination/renewal of the lease, possibly imposing a rental increase of whatever the landlord thinks the market can bear.
When you're ready to dump your rental life and look at buying a house, download "The Essential Guide to Buying Your First Home" at the button below. The free eBook covers the buying process start to finish.
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