If you’re currently living in your parents’ spare room wondering where the heck it all went wrong, you’re not alone. In fact, now more than ever, young people are taking trips back home and living with their ‘rents for a few years in order to save up for a deposit on rented accommodation, or a deposit on a house they want to buy outright. It’s a tough world out there, y’all. However, if you are in the process of saving, you might be wondering whether it would be worth your while to get your foot in the property door through the rental entrance, or the buying entrance. Here’s which option is better for you in today’s economic climate…
How long do you want to stay?
If you’re a young Millennial who is currently studying, or even in the early stages of adulthood, you may be wondering whether buying or renting is better for you – but this all depends on how long you would want to stay in a property. If you are planning on raising a family in a home, it would obviously be better to buy a house, so you know that everything you have is completely yours and that you have the ability to do absolutely anything you want to it. However, if you still haven’t worked out where you want to go and who you want to be in life, renting allows you the chance to move around. Yet, this time will also affect how much you shell out for this property. If you plan to stay there for a few years, it will work in your favor to buy rather than rent, as you will save money in the long run.
Have you taken into account the different costs?
One of the main benefits of renting is that you have a set price to pay each month, as well as a few bills here and there. Yet, if you ever encounter any problems, this will be your landlord’s hands, and they will also foot the bill. However, when you buy a house, all of these extra costs come down to you. You need to take into account things such as homeowners insurance, private mortgage insurance, property taxes, maintenance, and any damages that come your way. Interest rates for mortgages also tend to change every year, which means you may end up paying more for your house over time.
Are you really throwing money away?
Many people disagree with renting because you’re throwing your money away to your landlord, rather than investing in your own future. Because of this, they favor buying – but just because you buy your own house doesn’t mean you are increasing your money load. According to a NerdWallet study in 2017, owning a home will still cost you more every single month, no matter where you are in the United States. Although you have something to call yours, a lot of your money will be spent on costs around the house, rather than building up equity on the house.
So, which is better? Renting or buying? Well, in today’s current climate many would believe that renting is still the best option – especially for young people. However, if you have the money behind you and plan to stay in a house for many years, it might be worthwhile to consider buying it outright.