Is it smarter to pay a mortgage or pay rent?

The question as to whether to pay for a house and become a homeowner or to rent an apartment instead will be one of the biggest choices you would have to make in your adult life. The ideal thing will be to own the home you are interested in and not deal with landlords. The advantages are tremendous. However, you will also realize that there are also significant downsides to paying a mortgage and that it is better you rented. The factors that will inform your decision will depend on you, of course. Therefore, you will have to take time to weigh the pros and cons of both.

Buying your own home is an awesome idea. In fact, living it up is actually great. It comes with an unlimited freedom over what one does to ones property. You are free to renovate and decorate anyhow you see fit without needing the express permission of another person. You will also not need permission for the persons you choose to have in your house and no question will arise if you choose to adopt a pet. The privacy is also very enticing as you will not worry about noise from other tenants interrupting any of your engagements or having someone come in to ask that you tone down on your singing.

But more than the freedom to handle the place you live and the privacy that come with these is also the financial freedom and possible gain in owning your home. If you end up saving for mortgage and buying your dream house, you will be free to spend money on it so that you get to increase its market value. With the value raised, you can utilize the equity to purchase a bigger house, plan your retirement, and so on. This way you are seeing that it is better to buy than renting if you have the money or the prospect of saving up for it.

However, buying a house is a huge commitment and financial investment which means that you have to have determined where you would be settling at. Generally, it is a huge decision and it would be smarter to avoid it if you are not sure you can afford it especially in the long run. When interest rates increase, yours increase with it.  So before you go ahead to start looking for a property, you have to be sure you will not have any future financial restraints as there are huge consequences if you miss any payment. You will also have to cover the cost of any damage like leaks and in the event that you get a joint mortgage, selling will be extremely difficult if you separate.

If you are uncertain about the above, then it will be smarter to rent instead. With renting, you stand to move quickly to other cities if you ever need to. Also, if you are in a hurry to acquire a place you call home, it is advised you rent instead since the processes involved in buying is longer than when you are renting. You stand to have all damages repaired by the landlord and not you while you will not be affected if the value of the property you are renting goes down.

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