In this 21st century, when the population is increasing rapidly. Finding the right home in the correct location is the dream for the majority of humans. This fast growth has led to the constant construction of new homes around the developed metropolitan cities. The cost of buying and renting has decreased significantly in past few years. Lets us look at various factors that determine which one is best, buying a home or private renting? First, let us look at factors on which you should decide if that home is right for buying or renting, or NOT!
Location:
You should always prefer a house near your working place. This is really essential since the cost of living will directly depend on it. If your location is near, it will save the cost of travelling. This is a major factor in day to day life nothing is free even walking costs’ lot of energy. Well, it will save a lot of time too.
Size:
Size does matter a lot since it depends on the size of the family that is moving in. Just imagine if a family of four which includes a couple and two kids are moving in a 1BHK flat(1 bedrooms, a hall and a kitchen) would have to face difficulties in the day to day life. As 1BHK is ideal for a couple with no kids or an individual.
Security:
You should check how secure is the region you are going to buy or rent a home? The quality of security does matter. You do not want to buy a home in a region which is full of criminals and gangs, where robberies are common. This dream would turn into a nightmare. Safety is the first priority. Empty homes are called abandoned homes.
Quality:
Yes, quality of the home does matter, basically quality here means the condition of the home you are buying or renting. Keep in mind, to check the infrastructure for undesirable faults that should have been rectified by the concerned person. If you need any specific renovation according to your standards, then additional costs should be dealt with.
Neighbourhood:
Do not forget to research the area you are planning to move. Do check if the region has any active racist group or gang. Also, check how safe the location is for your religious beliefs. Finally, look around for social gathering places people in that locality. This will surely help you to diffuse mental stress.
BUYING A HOME!
Everyone wants to buy a house, his own sweet home. Isn’t it brilliant? But are you ready? Do you have the sufficient funds to buy a house? You should ask these questions to your inner self. If you have saved enough and you are eager to buy a home.
Let us look at the advantages of owning a home?
Advantages:
• You are the landlord.
• You feel secure. No one can kick you out now.
• Think this as an investment.
• Refurnish the house as per your standards
• Renovate the house without asking anyone
• Not a single penny is going waste
• Every new household product you buy will feel like building an Empire.
• You always have an option to use the equity, if your house value increases during the time. This can be your backup plan if in future to might want to buy a better home or enjoy a comfortable retirement by investing.
• You can always sell the property any time you want and go back on private renting!
Disadvantages:
• It has many tasks which are not easy at all. This includes various steps involving government officials, private agents, landlord, you and lots of time.
• This requires hard earned hefty funds unless you are applying for a loan which again requires ample amount of paperwork. This process itself is costly.
• You are the owner so all the maintenance work is under your administration. This is again a regular task requiring constant attention.
• Sometimes it is hard to sell your property due to an unstable market. This can be annoying if you need money instantly.
• If the house is on loan then as the interest rate rises so will the repayments. No one likes to pay more.
• In most scenarios, people mostly stretch out the budget which results in rare meal-outs, holidays and entertainment.
• During unstable relationships or marriages, the house can be a major factor to be dealt with.
• It can be the case if your asset value falls with time and you might have to sell it at relatively lower rates.
• You are doomed at one location for a very long time.
PRIVATE RENTING!
Private renting is for those who can not afford to buy their dream home or any house yet. This section of people consists of about 40% of the general population. Renting business has developed significantly and still progressing at quite astonishing pace. Renting has been the lifeline for those employers who have to travel many miles from their current home to get to work. If you are homeless, skip the above line mate! They have no option but to rent a house near their working location. This will save time, money and effort.
Below you will get the insight on various pros and cons of private renting.
Pros:
• Private renting provides you immense flexibility. You can clear out the location as soon you complete your notice period.
• You can switch jobs just like we switch clothes, you do not have to worry about the hassle of selling the house.
• No need for showing the vast amount of money. Just complete a few formalities, pay the bond and you can move in whenever you are ready.
• You do not have to worry about any maintenance or broken things. Landlord will get it fixed.
• Easy and less risky process. Instant check out is a valid option.
• Entertainment and enjoyment would not be compromised.
• Whatever happens in real estate market is not your concern.
Cons:
• Landlord rules will apply.
• The landlord may limit you for renovating the house which in few cases become unpleasant and uncomfortable.
• He can send you notice period depending on his mood.
• You will never get any equity no matter how much the price of the property increases with time.
• There are zero returns on the rent payments you have paid till date.
• Dealing with rude or aggressive landlords can be bothersome.
• After spending so much money, you still do not have your own home.
Your house is not just home sweet home but it is your castle! Choose Wisely!
