To rent or to buy? For the vagabond, frequent global worker and traveler, a mortgage just sounds like something to tie you down. Still, it does make a lot of sense to own your own home and the sooner you start planning for one, the better.
Here are a few things that you need to keep in mind when it comes to purchasing property.
- Owning means never being kicked out
So long as you can keep up with your monthly payments, you will always have the stability of a roof over your head. Having someone else own your housing means that you will always be at the mercy of your landlord.
While a singleton could more easily find another room to rent, for a family, moving house needs to take into account the needs of children. Having to scramble for a rental that is near junior’s preschool might not necessarily be easy. A stable environment is better for children than subjecting them to upheaval due to always needing to move from rental to rental.
- Your monthly payment is going towards an asset, not an expense
Paying rent usually means your money is likely going to your landlord’s mortgage for the place or for its upkeep. Paying a mortgage instead goes towards ensuring you hold on to your asset.
Whether it’s a starter home or one you plan to raise your family in, your house will be the most expensive and perhaps the most crucial purchase you make in your life. Rent is an expense; a mortgage is an investment.
- You’ll be paying more than a mortgage
While the mortgage will form the bulk of what you will need to spend on the house, you will have to budget for other things as well. Not just furnishings but for necessary renovations, as well as your yearly property taxes.
It is pointless to own a property and yet be unable to afford paying tax on it. Not paying your property taxes could mean huge penalties to pay, on top of your accumulated unpaid taxes.
If you have small children or the elderly staying with you, you might need to make adjustments to your home such as building a ramp for wheelchairs or making your house child-friendly.
- Freedom to make changes to suit your lifestyle
With your own property, you will have the leeway to decorate as you wish and also make adjustments to suit your lifestyle. Living in a rental limits your options or might have you paying more in rent just for a place that meets your family’s requirements or your own individual needs.
Owning your own property will mean the only constraints for changes you wish to make will be your own time, funds and existing regulations. Extensive regulations will often need approval from your local council or, if you’re in a highrise, from your building management as well.
- It’s all on you
One upside to renting is that your landlord will take care of maintenance and upkeep. Once you own property, it’s up to you to keep it in serviceable condition though if you live in a managed high-rise, you will be only be looking after your own unit.
Still, for some people the added responsibility is an acceptable trade-off for more freedom in making upkeep decisions – getting to choose your contractor or repairman, for instance and not having to wait on your landlord.
At the end of the day, while home ownership can seem like a daunting proposition but for many it is an essential and life-changing purchase. There really is nothing like being able to say that your home really is yours, in every way.
MY – EN
Singapore
Indonesia