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Is Buying a Property Really Better Than Renting Long Term?

posted by Chris Valentine

Buying property is a crucial investment decision. It has its advantages as well as disadvantages. Owning a house represents a dependable way of building equity, and has been considered the ultimate representation of financial success. The housing bubble burst revealed that the decision to buy property isn’t one without risks of its own.

Is Buying a Property Really Better Than Renting? This is a debate that rages on, year in and year out...

In order to make smart mortgage purchases, a couple of assumptions need be demystified:

Houses are a guaranteed investment: According to forecasts predicting property prices flatline, this is not accurate. Property investments are all too susceptible to economic conditions such as unemployment, inflation, and of course, Brexit.

Buying is always cheaper than renting: This assumption is usually arrived at when taxes, maintenance, and insurance are discounted when comparing the cost of buying to renting, such that only mortgage payment figures are used.

Owning a home as opposed to renting and vice versa isn’t necessarily an inspired decision or a terrible one. The ‘buy or rent’ decision is usually dependent on circumstances that translate to it either being a stroke of genius, or a recipe for disaster, which transcend the monthly income consideration.

How long you’ll live in the home: Owning a home when you plan to remain in the same place for decades seem to be a generally good idea as opposed to staying for maybe four or five years. This is because the cost of buying is usually spread over a greater number of years, and you are left at the mercy of the housing market in the event of having to make a hurried sale. This is weighed against the cost of rentals, which could rise almost every year.

When it comes to the decision of whether or not you want to own your own house, you need to be sure that you have the right mortgage plan from your bank, which typically comes off the back of many months of intense research. Owning a home isn’t necessarily better than renting, and vice versa. Individual circumstances when taken into consideration, usually inform a safe decision.

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