Rent or Own? Which One is Perfect for you?

You're probably at the moment in your life wherein you want to rent or to own but still is lost on what to do so you tried googling for answers and stumbled upon this article.Renting or owning a house/property is one of the struggles as an adult, there are different pros and cons so I wrote this article hoping it will help you decide on this matter.

Renting

to pay or receive a fixed amount of money for the use of a room, house, car, television, etc.

https://dictionary.cambridge.org/

Pros of Renting

1.No maintenance cost or repair bill

Since the property is not owned by you, you don't need to pay any repairs or maintenance cost because that is the duty of the owner. 

2.You don’t need to pay real property taxes.

Not paying of real property tax because that is the duty of the owner because people whose names are on the titles are the ones required to pay for the land taxes here in the Philippines.

3.Flexibility 

You can move anytime you want without a property holding you back like who will take care of the house? Who would pay the taxes when I'm outside of the country? And you can upsize or downsize your home according to your budget. If you want to save money for something,then rent something smaller and save money.

Owning 

to have something that legally belongs to you.

https://dictionary.cambridge.org/

Pros of Owning

1.Long term investment

Owning a house is a long term and dead investment which means you really need to think about it before buying it. It's not something you need to decide on a whim. It requires a lot of money and it doesn't generate any income.

2.Customize your home

Since you'll build your own home or buy a house, you can customize it without any worries aside from the budget of course since it is your own.

3. Have living security

Worries of getting kicked out of the house will not be a problem since it is yours. Even though renters and property or home owners have contracts,the renters are always at the mercy of the owners since it is their property.

Both owning and renting have their own pros and cons,but there are a couple of questions you need to ask yourself before deciding something life changing like being a home or property owner.

1. Can I afford it?

This is the biggest question you must ask yourself. Yes you may want to have your own home but can you afford it? Is your income stable enough to pay for it?  Since it is a big decision,it's better to write down your income,expenses, emergency fund and savings just in case there's unseen circumstances,can you still pay your loan or other expenses that needs to be paid as a property owner.

I stumbled upon these online calculators where you can compute your mortgages, estimating affordability and loan overpayment. It's a UK based calculator but the concept is still the same and can be used in countries outside UK.

2. What is your current priority?

Different marital status in life have different priorities like married ones need to consider if their current home is enough for their family or are they planning to upsize their home if they're planning to have more children so they need to increase their savings to afford their new home. For single people,are you planning to stay in your home country or live abroad? Buying a house may not be the wisest idea since it will tie you down one way or another and you can spend your savings on things that matter at that moment.

3. Can I see myself sticking to that decision?

Since this kind of investment decision is big, it will need a lot of sacrifices. Are you ready to give up some of your simple joys in life to save money like going to Starbucks to grab coffee or eat at a restaurant for dinner? Or not buying your dream bag or postponing your dream vacation to Europe or Japan. I'm sure these sacrifices will really help you in attaining your goal since you'll be spending a lot of money to acquire the land or house & lot. Are you willing to stick to your decision since it is for your own future so the sacrifices are for your better future.

So that's some of the questions you may need to ask yourself before deciding with these kind of life changing decisions. Just remember, life is not a race so do not feel pressured with your peers, as Mr Oscar Wild said, "True contentment is not having everything, but in being satisfied with everything you have."