Should You Buy or Rent Your First Home?


Whether it’s for privacy, to start a family, or even just to move somewhere else, lots of people think about moving to a new home. Sadly, the idea of buying a new home can be incredibly daunting, especially if it’s your first time going through the process. In fact, it’s overwhelming enough that many people look to renting instead of buying. It’s usually seen as a much faster process, and you don’t have to invest a lot of time and money into a home that you could be living in for decades. But what are some of the pros and cons of renting versus buying? What would be the better option for you? Let’s take a look at the two choices and compare.

Buying a home
Buying a home means building equity over time. Although you have to make mortgage payments each month, you’ll be paying off the debt and increasing your ownership stake in the home. Eventually, this means that your home will become your asset. You could rent it out to people or even sell it for a potentially higher price if it’s in a desirable area. Another benefit is that you have far more control over your living situation. You get to perform as many renovations as you want (assuming you have planning permission) and you don’t have to confirm with a landlord before every little decision. You can have pets, you can build a swimming pool, or you could convert the garage into a gym–your home is yours! But let’s not ignore the costs of a home. Buying a home can involve a lot of financial responsibilities and if you’re unable to meet them, you could potentially lose your home. Don’t attempt to buy a home until you’re certain about your circumstances. The last thing you want is to miss mortgage payments and ruin your credit history and financial situation. To avoid this, it’s a good idea to work with a mortgage broker to help you find the best deals on a home. It’s important to perform a lot of research on buying a home so that you get a great deal on a house that is perfect for your needs and is in an area that you like. So while buying a home is certainly more expensive and requires more financial investment, it does come with plenty of benefits that you could value.

Renting a home
Renting is often the cheaper option of the two because you don’t need a huge down payment and monthly rent payments are likely cheaper than mortgage payments. You also get a lot more flexibility with renting. You can choose where to live and switch to a new location or city every couple of months if you really want to. You also don’t need to worry about furnishing the home and all of the repair costs are generally handled by your landlord. But of course, renting means that you’re not building equity. None of those rental payments will amount to anything in the future. You also don’t get as much control over the property which can be a dealbreaker for some.

So whatever you choose, it’s worth looking at the pros and cons of both to see what fits your circumstances better.