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Rent or Buy?

Undoubtedly, the climb up the property ladder is never an easy feat. There are lots of hurdles to overcome and a number of issues to consider. Among them are the finances, the mortgage, and the interest rates. This often leads many prospective home buyers to rethink their decision or re-consider their plan of buying their own home.

Rent or buy? This is the most bugging dilemma faced by many. A million-dollar question that has no definite answer. This is because no matter how many pessimists and optimists are there in the housing market, nobody can really predict what will happen to the prices of houses over the course of years. But the thing is, it all depends on your margin for your risk; nobody else can make this decision for you. So are you willing to take a big risk in real estate investment, or content with renting an apartment for the rest of your life?

Well, it is hard to bet on something that you are not certain of. To help you decide, do the math and contemplate. Start by determining how much money can you save by renting as opposed to buying. Do not forget to take into factor your finances. Do you have a stable income stream? Is your job secure to provide you continuous income to pay for the monthly mortgage? All of these you must consider in order to make a realistic decision.


After which, analyse if there is going to be a property crash in the near future. As much as property acquisition is concerned, buying a home is better than renting for home buyers with average income, if annual appreciation of home prices will not reach three percent 15 years after the acquisition. However, renting is more sensible if annual rent increase/decrease averages at three percent. But as mentioned earlier, nobody can really predict what will happen to the housing market after the next few years that you have made to buy your own home. The only guarantee is that the housing market is historically stable, tilting to bad times a little, then regain its balance and stability.




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