Is it better to buy a house or rent

In personal finances, where you take shelter and how that’s provided is very important as we all need a place to live. It’s perfectly okay to find yourself asking whether to rent or buy a house. 

There is no direct answer to this question because all of our lives are different to a certain extent, and purchasing a home may not be a worthwhile purchase at the moment. Aside from the finances, it’s essential to take a look at your life and ask if you want to settle down right now and answer whether or not you’re going to live in the house you purchased. If so, it’s definitely going to be consideration to buy a house. If not, renting is your best bet as you are not bound to a specific location, and since you don’t want to settle down to this particular location, you can always look for another. 

Market value of real estate property

However, just because you’re not settling down doesn’t mean you shouldn’t make a purchase. It would be in your wisest interest to see how the real estate market in the area you’re planning to make the purchase. In some areas, the market tends to go up after two or three years of staying flat. An increase in house prices can mean your $300,000 investment turning into a $400,000 one. So it’s always good to keep an eye on the real estate market’s performance in the area you’re planning to make the purchase. 

Renting for long-term 

Renting a real estate property for the long-term doesn’t make that much sense if you can make the purchase of that property. Because if you’re going to spend more than ten years of your life, it doesn’t make sense to pay rent for the long-term. Still, there are a lot of variables to it though. If you’re outside of the location you want to live, it’s certainly not going to be feasible to buy the house. 

You may also miss out on the benefits of reduced down payments for a mortgage as a first-time homeowner as you can just make a 5 percent down payment and get your home loan.

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