“I’m tired of paying money on rent!”
Have you heard that phrase?
If not … maybe on this one:
“Money on rent is money thrown out the window.”
There are many who claim that being the owner of the house and not just a tenant is the best option.
But there are plenty of people who are on the other side of the barricade and prefer to pay the rent monthly instead of getting tired for paying for decades to the bank.
Have you ever heard your friends say, “I’m not crazy to pay for 30 years to the bank! Who knows what can happen in the mean time? It’s just too long!!!”
The question is:
Who is right? How is it best: to own or pay rent?
We will try to find the answer to this question in this article.
What I want to clarify, however, from the very beginning is this: the information I will provide further, will not make you permanently pass on either side of the barricade and to be pro or against rent for the rest of your life .
That’s because, in our decisions we have to take alongside our lives, and there are, besides our preferences, a number of other factors. Some of these factors are static.
There are also dynamic factors. And these dynamic factors makes that what seems to be the perfect choice now, over the next 5 years will no longer be a good idea.
That is why, I’m proposing to address both the owner and tenant in terms of the advantages and disadvantages offered by each of them.
So, anytime, during your life, reading this article, you can review all these advantages and disadvantages according to your situation at that time, and as a result, you will be able to make the best possible decision.
Why buy a house or apartment?
You buy a house once in your life
A house is more than a roof over your head.
The feelings you associate with your home can be even stronger if they mark a new beginning.
For example, if you just married and together with your half bought a house, you think at it as your home, the home that, over the years, will shelter countless dreams, hopes, but it will also witness many events in live through which every man passes, at some point in his life.
That is why a word from the old says: “In a man’s life you must make a child, build a house and plant a tree.”
Whether you agree or disagree with this phrase, I’m sure you understand the point of having a home. That’s because this house is the foundation for everything that’s going to happen.
It provides stability
You know that you have where to come back every night; a place where you can put your head down and rest after a full day.
You know that you are not at the owner’s mercy that can ask you anytime to leave the house within … or change the terms and conditions whenever he wants or … even worse, maybe sell the property if he is offered a tempting sum of money.
In this situation, you are the one who decides.
And as most of the owners do, if you’ve chosen to pay a 25-30-year credit to the bank, you know that with every single payment you make, every passing month, you’re a step closer to owning 100% of of your house.
There are no surprises
Even if small incidents can occur from time to time (for example: the neighbor above has flooded you and you have to paint again), that does not mean that this will happen every month. Normally, the expenses for your home remain the same.
This will help you to keep track of your expenses, forecasts and financial goals.
Diversification of income sources
Although investing in buying a house to live in, in the long run, does not necessarily prove to be a profitable one, the fact that you own a house can help you a lot in getting new loans from the bank if, from the situation your account, resides that you are a good payer.
If instead, you’re thinking about buying a house, in order to rent it is a good idea. Real estate is nothing but another source from which you can receive passive income month by month from the people you rent it.
Why rent a house or apartment?
You do not need the bank’s approval
There are people who, for various reasons (theirs or the employer) can not go to the bank to opt for a credit for buying a home.
For them, this second option works best. That’s because the system is simple, fast and works in 3 steps: Seen. Pleased. Rent. No more months of running and dozens of approvals and of course … without the burden of thinking that they will have to pay 25-30 years to the bank, no matter what.
Flexibility
And when I say flexibility, I do not necessarily mean the flexibility of the location but also the budget.
Think about it this way: maybe you want to live in the capital city today because, why not … here are the most interesting events?
Later, the agglomeration and madness of the capital don’t feel no longer so good, and you decide to move to a smaller town.
To the retirement age, you may want to live out of town for a simple and quiet life in the country to be closer to nature.
All of these changes can be done quite quickly, because you do not have a real estate already bought to keep you moving from where you want, when you want.
This is perfect for you if your job or business forces you to travel a lot and as a result you have to move often.
We also talk about cost flexibility. If you want to stay in a central area you will pay a price. If, then, for various reasons, you want to pay less, you can rent a property on the outskirts of the city.
Your family is growing up and the studio you lived in until yesterday, has now become a snap? No problem. You can rent a house or apartment with 2 or 3 rooms at any time.
As you see, as a tenant, you have a very high flexibility, both in terms of location and in terms of the amount paid for the rent and the size of the rented dwelling that can be changed, as said above, consistent with the changes that occurs in your family.
Avoid extra expenses
Do not imagine that if he owns the house, the owner of the house has escaped other expenses. Not at all. There are a lot of expences that gather in time and need to be resolved, so you can still live in good conditions in that house and continue to pay rent.
That’s not to mention the taxes that the landlord has to pay annually. You, as a tenant, do not have to take out any money from your pocket for that.
As a tenant, you avoid the costs of removing the furniture, redecorating the new home, etc.
Access to liquidity
A house can not be converted into cash from one day to the next. From this perspective, it is illogical to put your lifetime savings in one thing: in a building.
That’s because it cannot be turned easy into liquidity and also, depending on the evolution of the real estate market at that moment, no one can guarantee you that the real estate you own will be sold over the years at a price above acquisition.
Instead of a conclusion
Now, at the end of the article, I’d like to know your opinion. From your point of view, if you have the choice now: to rent or to buy a house, what would you choose and why?
