Learn How to Decide Between Renting vs. Buying a Home
When you’re planning on looking for a new dwelling, you have an important decision to make on whether to rent or buy your new house. In some cases, the decision is made easy by the personal situation of the person looking for the dwelling, for example, if you’re fresh out of school and are looking for your first home then it makes more sense to rent. But for a more established individual with a family and a stable source of income, then buying a property like Botaniko Weston becomes an obvious choice.
But there is a lot of middle ground where it is not clear whether renting or buying is the obvious decision. The fact that homeownership is assumed to build equity does not make it the automatic choice because it also has hidden costs to consider. In the article that follows, we will look at some of the criteria that affect the viability of renting or buying a family home at Botaniko Weston.
The first step you need to take while looking for a house in your preferred area is to ensure that your new home meets your requirements. The list of requirements is very subjective and depends on the individual. Some people might need a two-bedroom house or a three-bedroom house. Some might want to live in a gated community and other family factors.
When deciding on the affordability of either buying or renting you should list down the monthly cost that you will incur to live in that house. The costs will include fixed costs and recurring costs. Buying a house includes the following costs: property taxes, home insurance, repairs, HOA fees where applicable. If you’re purchasing your Botaniko Weston home through some sort of financing then you’ll also have a recurring mortgage payment.
The cost associated with renting would include the first and final monthly deposits and the monthly rent and the cost of utilities. Comparing these monthly costs of both buying and renting should give you an idea or whether you can afford your prospective home. It is worth noting that it is advisable not to spend more than 33% of your gross monthly salary on housing costs whether that cost is mortgage or rent.
Return on investment
You can also invest in a home in Botaniko Weston with the intention of later selling it for a higher price than what you spent buying it. If you’re moving to a new area, compare the potential monthly mortgages versus the current market rental rates because in some areas the rents are so high that they are almost equivalent to mortgage rates in which case it makes more business sense to spend your money on a mortgage than on rent.
You should also be careful to consider whether the house prices are currently on an upward trend so that you understand the risk of investing in a property only for its value to come crashing down.
How long you intend to stay in the property
Buying a property at Botaniko Weston is ideal for individuals who want to set roots and have a long-term plan of living there. But in some cases, for family or career reasons, the individuals are not able to stay in one area for a long time. If that is your situation then it is better to rent. You might be in a career that requires a lot of moving around, for example, you are in the army on active duty and are likely to be deployed maybe to a military base in a foreign country.
Renting a home is less demanding in terms of chores than owning one. The management company or the owner of the home is responsible for maintaining the house when you’re renting. They will also employ janitors to carry out outside chores like maintaining the grounds. When you own your home at Botaniko Weston, you are responsible for the upkeep of your home and any repairs that you need.
Personal factors include things like the size of your family currently and your future plans to grow your family. Surprisingly, it is more flexible to rent because you can always move to a bigger house as your family grows. Transitioning from a single-family unit that you’ve purchased as your family grows is more complicated.
So single-family unit houses like Botaniko Weston are ideal for individuals who are quite clear on the size of the family. These family homes are also ideal people who have already stabilized their careers and can comfortably manage to fulfill their mortgage obligations.
So these are some of the factors that will guide you on whether renting or buying is a good decision for you.