Problems and Answers to Rent or to Buy...?

Often we get asked 'Why should I buy?', and fair enough.. chances are you will buy something that will cost you as much per month for the mortgage repayment as it would to rent, but you'd be able to rent something a lot nicer for the same amount. So, here's some more of our thoughts;

Problem #2: I'd rather rent and wait to buy what I really want.

This sounds all well and good, and it means you get to live where you want, enjoy the lifestyle your dream of and so on. But in the broad scheme of things, is this really what you want?

As you spend this time of life, 'saving' to buy the dream apartment or house in the dream location, what is actually happening to you money? Are you really saving? While the bank balance may be going up, remember that you're still paying rent to live. And that rent, is filling someone else's pocket or paying off someone else's mortgage.  

So, is it better to rent or buy? Well, The way we see it is it's always better to buy, whether its the dream home or not. Find something in your budget, do some research and buy! Live in and make your mortgage payments be your rent! Then if you want to move, do so, pay rent, but have tenants pay off your mortgage while you pay off someone else's with your rent. 

This is fool-proof, it keeps the world going round and your money safe. And if you choose wisely, while you're saving for the dream home, the place you own may just double or triple in value while you wait. 

Easy.

 

Posted on May 27, 2014 .