Being a tenant or a homeowner has its own perks and tricks. Some people have a choice to buy a house or keep renting an apartment. Clearly, you need to take into consideration all your options before your decision. There are a lot of advantages and disadvantages to owning a house or renting an apartment. Some people prefer living in a house because they want to have less contact with neighbors, while others enjoy the life in a vibrant busy city. There is no universal solution for all.
Become a tenant
You don’t need to invest much into an apartment that does not belong to you. All you need to do is to pay the security deposit and the first month rent. You will also enjoy the freedom and flexibility to change apartments and find a perfect neighborhood in the town. You will investigate the area and then decide to invest into an apartment or not.
You also don’t need to invest into your apartment. In case anything breaks in the apartment all you need to do is to call your landlord.
You can also invest your savings elsewhere and double your money. Invest your money into some profitable stock market.
Renting is the best option for a person who hasn’t yet decided on location and country of living. If you live in between different cities and jobs, you’re not ready to settle down and buy a house. Unstable income would also prevent you from getting a place of your own.
Becoming a homeowner
Owning a house may seem like a great investment. Buying a house is a good decision for a family with children. Your own house would provide your family with a stable accommodation and a freedom to renovate or redecorate your place. There is no need to deal with any landlord.
Homeownership requires some knowledge of the real estate industry. Potential homeowners should spend some time doing the research on prices, insurance, investment risks, etc. House prices fluctuate and depend on many factors.
Some families don’t really enjoy living in a suburban neighborhood, it may seem too quiet. It could also put a serious financial strain on your budget. Don’t forget about annual costs that come along with the home ownership. You would need to pay taxes, insurance, interest rates, and other fees. These expenses may exceed the cost of renting an apartment.
House insurance is another important factor that homeowners should consider. You can spend hours trying to figure the best insurance plan. In this case you need to compare different insurance policies through websites specializing in insurance deals. This way you will have a clear idea of a perfect insurance plan that would cover any potential losses.
Buying a house requires a lot of investment. That’s why you need to be realistic about your family’s financial state. Some people simply enjoy changing locations and apartments while others are looking for something stable. You need to decide what’s best for you and go from there. Consider all pros and cons of renting versus owning a place.
This article is a guest contribution by Lisa Peteres. Lisa is a freelance writer currently working for homeinsurance.com. Feel free to reach out to her if you have any questions – just drop a comment, she’ll be happy to help.