The question of buying vs renting is something that “torments” a lot of people. Each one of us has to make sure they have a place to live when the time comes to move out of our parent’s house. So, is it better to buy or rent? Well, it’s not that black and white honestly, we’ll have to get into it a bit more in-detail.
The real estate market is currently going through a lot of shifts, mainly because of the covid-19 pandemic that’s affecting basically every field of life. Is it risky to invest in real-estate at the moment? Kind of. But that’s not exactly what we’re here to talk about, and we’ll leave that for some other time.
Now we’re here to help the consumers, those looking to find a place to live. Purchasing a home or moving out of your current one is not something that happens frequently in a person’s life. In fact, some people only get the chance to do it once. For others however, it can be a quite “common” thing, but these are rare individuals.
Let’s weigh in the pros and cons of buying vs renting in 2020. This is what you need to know.
- Can cause an economic imbalance (Disadvantage)
You see, spending almost a million dollars, of course, depending on the area in which you live, on a home, is definitely something that will leave “a mark” on your financial state. Most of the time, people don’t have these money to pay at once. Most of them apply for a credit or any other type of a financial support. This usually happens when people find a great opportunity but they don’t have the money at once.
- You have no further worries (Advantage)
Now as tiresome and demotivating lending money from a bank and paying month by month for your new home is, there’s an advantage of purchasing the home instead of renting it. You have no further worries and you know that the home is yours. The landlord cannot “kick you out” whenever they feel like it. This is especially important if you are a parent and it’s a risky situation to be left out without a roof over your head. Not that it isn’t for everyone, but you get the idea, it’s easier to find a solution if you are solo.
- Making the best choice when you have the money (Advantage)
When you are renting, for example, you won’t be able to go for something that works great in your favor. Actually, you have to choose what’s given to you. Checking Craigslist or something to find who rents what in your area, and that’s mostly it. When you’re able to just go and purchase any place, it’s much easier to find something that matches your needs. So basically what we’re trying to say, and that’s a pretty obvious thing but it has to be mentioned, for the long run, it’s better to buy. Or let’s put it together in a different way, it’s better to have the money to buy.
- More economic stability (Advantage)
By not giving all of your money at once for the place, you will be able to use them for other things as well. A few examples are a vehicle, scholarship for your kids, healthcare and a lot more. Of course, the best scenario is having enough money to purchase everything at once, but that’s rarely the case nowadays. More economic stability means a huge relief for a lot of people, but once again, there are pros and cons of both sides, it depends how you look at it. One of the main risks that makes people quit and not proceed with this idea is losing their job while being stuck with the monthly rates they have to pay. We’ll get to this in just a few seconds though.
- You can share the rent with other tenants (Advantage)
Students for example share their costs by finding other roommates to live with them, and that’s when it’s really worth it to rent. But, if you are renting solo, and you want your place to be somewhere in the center of the city or something similar, a busy place let’s say, it’s going to be way too costly for you. Unfortunately, sometimes students are unable to find roommates to share their costs with. Then they usually try to fully purchase a place, but a smaller one instead.
Thankfully, nowadays there are many different ways of finding roommates. There are entire websites and smartphone applications dedicated entirely to this. The internet changed a lot of things, even in this particular field.
- It can be dangerous if you lose your job and become unable to pay fees (Disadvantage)
Although purchasing something and not paying for it instantly is great, there’s a huge risk of not being able to finish paying for it if you somehow lose your job. Now, it happens very rarely for a person to get fires just like that out of the blue, but here’s the thing. It’s 2020, and many smaller, or even larger businesses lost their ability to keep on functioning due to the mild economic crisis. So, if you work at such a place and the business suddenly goes bankrupt, you’ll suddenly be left with all these monthly costs and with no income. It’s a dangerous situation and nobody wants to go through that. But, for most people, there isn’t a choice. Purchasing and paying in cash when it comes to real estate is rare. Thankfully, real estate agents can help you find something that’s worth renting.
Real estate agents can help you find something that’s worthy of your money. Whether it’s better to buy or rent however is a question that will be unanswered for a long time. It’s best to say that both situations have their pros and cons, and weighing them in is the best way to know what’s optimal for your particular situation.