You will make many investments throughout your lifetimes, such as buying kitchen appliances and even a car. One of the most expensive investments you can ever make is purchasing a home, especially when buying one in high-demand areas like cities. This steep price may easily steer you away from ever thinking of owning a house, possibly causing you to rent over buying one. However, some people still believe that homeownership is a much better choice, especially in the long run. Then again, many still stand by renting as the better one.
The Most Critical Factor in Owning a Home
Are you torn between purchasing a home and renting one? If so, here are considerations you should make to understand whether or not you should buy or rent a home.
Homeownership Vs. Renting - Finances
The first thing that may have popped up in your mind when it comes to the most essential factor when owning a home is money. This, in many ways, is true. For example, for renters, the prospect of buying a home can be financially distraught, especially if moving from one place to the other. In many cases, if they were to buy a home, they will have to spend extra on costs such as commissions. These fees can range from a few hundred dollars to thousands of dollars, and even more so for individuals that move often. Another type of cost they will have to also deal with are mortgages, especially the penalty of exiting a mortgage early. The list goes on and on, from land transfer tax, property tax, and transactional costs.
In terms of finances, buying a home may seem too expensive to be worth the money. However, one should never base their purchasing decision on money alone, and you should consider the other factor: emotion.
Homeownership Vs. Renting - Emotions
In many cases, most homeowners did not buy a home because of financial reasons. If they were to do so, they would most likely not purchase a home at all. Instead, they did it for emotional reasons. In a sense, they invested their emotions into the purchase.
Many homeowners, many of whom have experienced renting at least once, can proudly say that they will prefer to buy over rent. This is because of all the emotional benefits that come along with homeownership. For instance, many have experienced much lower stress levels because they know they have a stable and permanent residence. Homeownership has also been connected to improve healthcare, lower crime rates, and many other factors.
With all of that said, should you buy or rent a home? That will depend on what you value the most. If you put emotions first, then owning a home is the way to go. Nothing can beat having the peace of mind knowing one owns a permanent home that offers various benefits such as reduced stress, a safe environment to bring up children, and more. On the other hand, if you value finances, then renting might be the better option due to all the money saved. However, knowing that we are all emotional beings, homeownership will always be our best recommendation. With communities looking to establish safe environments to live in permanently, you cannot go wrong owning a home, especially when thinking about settling down for good.
Re/Max Valleyview Realty is a real estate agent that helps individuals sell and purchase residential, commercial, and farm real estate in Manitoba. If you are interested in buying a house, work with me today!