Before buying a home, it’s important to consider how such a purchase will affect your finances and your lifestyle. It makes sense to review all of the advantages and disadvantages of becoming a homeowner before making this big commitment.
Advantages to renting
Being able to give notice to vacate gives you flexibility to move to a different type of property, to a different area (or country!), or move in with someone else. Moving out of a rented home can often is quicker than selling a property, which is useful in case a relationship breaks down. Renting can also be a handy way to test a new romantic relationship
The expense of maintenance costs is not yours, meaning you are not responsible for the likes of a broken boiler, making it easier to predict your monthly costs and giving you time to enjoy other things.
Benefits of owning a house
However, if you are planning for your long-term future, and have the money, then home ownership is a smart move. Make buying a property expensive in the short term – it is cheaper in the long term.
A fix rate mortgage means you’ll pay the same monthly amount for principal and interest until the mortgage is paid off. Rents can increase at every annual lease renewal. Fluctuating property taxes or homeowner’s insurance can change monthly payments, but that typically doesn’t happen as often as rent increases.