House - buy or rent?
And here we are again at the sweet blog, the sweetest blog online.
And today, we would like to discuss one of the most age-old issues when it comes to housing.
House - rent or buy?
It is important to note that the preference of one option over another is not only due to economic matters. There are other components such as peace of mind and so on. In this article, we will try to discuss them all.
Below, we will review the pros and cons of each option and ultimately express our opinion on the subject.
Ultimately, stability is one of the most essential things in life. And no element is more related to the concept of stability than your home (check out our article regarding the deep essence of "home").
Anyone who has been in the situation knows the annoying feeling that at the end of the lease, your landlord comes to you and asks you to prepare for the eviction because his son is looking for an apartment or something, and he decided to live in the apartment you currently live in.
This is doubly complicated when you have children studying in educational institutions close to your home, and you need to be reorganized on the subject of schools.
A house you bought belongs to you, not to anyone else. And no one can get you out of there for no reason.
Stability is definitely a key factor
Stability is also reflected in maintaining your and your family's sense of community.
If you do not frequently move due to rental issues, you will maintain family stability and be part of a stable and happy community.
Therefore the issue of stability is significant in aspects of this issue, and it stands as a significant advantage in favor of buying a home.
The fact that you do not have to be in constant pursuit of an apartment search, and you are well planted in your place, can give you tremendous peace and quiet.
Rent - unstable.
Buying - very stable.
2. A sense of worth.
"The instinct of ownership is fundamental in people's nature."
Said the American philosopher William James.
There is something special about this sense of ownership. Something to do with a deep understanding of worth.
We do not claim that a person who does not own things lacks a sense of worth. That's not our intention. We are trying to say that there is positive energy in owning an object.
This is most relevant when it comes to buying a home.
When the house is owned by you, this is not the case. Unlike a rented house, which any repair you want to make or add you want to add, you require the landlord's approval. You and only you will decide when and how to fix or add things. If you feel like changing the color of your home for no particular reason, you can, of course, do so. These are your walls. This is the house! Your.
The same sense of worth will undoubtedly contribute to your peace of mind.
A sense of worth as a mental booster
It is true that even in renting an apartment, you can achieve a certain sense of value, certainly if you rent for the long term and invest in the visibility of your apartment, but with that being said, still, deep in your heart, you know that this is not your home.
He's someone else's.
Check out this article, and you will be able to enrich your knowledge a lot when it comes to feelings related to buying a home and what is that sense of ownership for you.
Rent - a limited sense of value.
Buying - a powerful sense of value.
3. Economic benefits.
Although it is clear that there is a strong disagreement among economists regarding the question - is it financially alone, it is better to rent an apartment all your life, or buy one with the help of a mortgage (like most people)?
- Still, we agree with the position of those who argue that buying an apartment is a more prudent economic act.
Why, might you ask?
After an in-depth analysis of the issue, we came to the conclusion that the reason why there is a claim in the first place regarding the economic preference of the long-term rental idea over a mortgage purchase is the insight regarding the existing investment alternative with the amount used as an "initial entry-amount." For the mortgage transaction.
The same insight argues that instead of entering into a long-term, full-interest and "heavy" deal with the bank and taking out a mortgage, it is much better to invest the same amount and invest in something with the most solid return possible thus earn more. And easily.
What will cost you less?
The problem with this argument used by many people who support the long-term rental idea is that the vast majority of people do not have the same amount in the first place. And most of them "kill themselves" with other risky loans and so on to obtain it, so the matter of investment is irrelevant to them.
But if one simplifies this question and leaves it as only a "pure" idea which puts the idea of renting a long-term apartment against buying a house, it is clear that purchase is much more economically worthwhile. After all, when a particular person rents an apartment, he "throws in the trash" every month the rent money that goes to the landlord, as opposed to buying an apartment, when in such a situation, every month his mortgage buys him another small piece of the house by repayment.
And yes, we know that during the first years, they only pay interest.
We are still standing behind the buying argument.
Rent - Money is thrown in the trash every month.
Buying - brick after brick, in the end, the house will be yours, and you will leave it to your child without debts.
The massive burden on anyone who has taken a mortgage from the bank is a well-known fact.
The crazy interest rates, the increased pressure at any time of a delay in payment, and of course, the great fear that following a surprising life crisis, you will run into financial difficulties that will not allow you to meet the bank terms and your dream home will take from you.
In most cases, in the first years after buying the apartment, you will mainly pay interest that is not related to the original loan amount you took.
Sucks, we know.
Read here more about known difficulties regarding mortgage payments.
The fear of falling into such a situation
Rent - No mortgage. Fun Fun Fun!!
Buy - Can someone shoot me, please?
An important point that many supporters of the long-term rental idea are waving at (and rightly so) is the matter of the day-to-day responsibility for home maintenance.
In general, it can be said that when you rent an apartment, any repair required that is not due to unreasonable use, will be the responsibility of the landlord.
If you own the apartment, surprise surprise - all these expenses are entirely on you.
Who will fix my sink?
By the way, if you are renting an apartment, read more here about the frequently asked questions as to when it is your responsibility to repair and when it is the landlord's responsibility.
The matter varies from region to region, but the principles are pretty simple.
Rent - fewer expenses for maintaining an apartment.
Buying - all at your expense.
In conclusion, we have listed above all the main arguments that usually arise in any "buy or rent" dispute.
In the end, and after including all the arguments for both parties, our opinion is that if you have the financial capabilities, it is better to buy. And not only from the economic aspect but also from the mental and emotional aspect.
For you and your loved one.
And if you have already come this far, do not forget to jump to our collections page.
What are you waiting for?