Buy or Rent
Whether to buy or rent? This is one debate that has been raging for quite some time now. There are strong opinions, for and against, that deepen the rift in the ‘buy or rent’ debate.
The question, whether to buy or rent, call it a debate, hinges on affordability. If renting would have been so lucrative an option, the richest people in the world and smart investors would have all lived in rented homes, rather than owning multiple properties. But for we all know that it isn’t the case.
If you are good on the money front, buying is always the better option. For, once you have paid the mortgage the house is yours. Any appreciation that the house accrues over time, will belong to you and not some landlord. If you fall on tough financial times, you can refinance your loan and obtain a better term and rate, or sell it off altogether. As a homeowner, you have the option to revamp the ‘look & feel’ of your home, the way you like, and that too without the consent of a landlord. Paint the red, blue or yellow, your choice!
Home ownership, however, comes with certain burdens and responsibilities as well. You must plan your finances well and make sure that you do not default on your payments unless you want to lose your home. As a homeowner, it shall fall upon you to pay for such things as property taxes, insurance, loan interest, maintenance and upkeep cost. You sadly will not be able to call and ask the landlord to fix the leaking plumbing or restore the unkempt garden.
There is no definite answer to the ‘buy or rent’ question. It depends on how individuals perceive it and what the nature of their current financial conditions is. It also depends on the prevalent market conditions and the promises they hold thereof. For instance, the current Dubai market is inclined more in favour of home buyers than renters. Primary reasons being, low mortgage rate and high rental yield.
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