Is renting better than buying a home? Or is it the other way around? At some point, this question pops up at least once in a lifetime. Even someone who is comfortable in their rented apartment and pays his rent on time will probably have faced trouble at some point during the tenure.
Here’s the thing – whether you want to rent or buy, it is up to you. Sometimes it can be frustrating to pick an option; that’s why this blog highlights important factors that can help you pick the better option.
Let’s mull over the basic question first.
Can you afford a house?
It’s easy to say yes when idealizing buying your own home. However, reality can be the opposite. A mortgage is a sound option in this case, but the housing costs exceed the mortgage. While renting, there’s no proper check and balance of taxes, domestic expenses like lawn mowing, repairs, utilities, etc.; even if something breaks, you have to inform the landowner or get it fixed yourself by calling the maintenance guy.
But if you choose to buy a house, it’s preferable to buy a house in a housing scheme like Citi housing Multan phase 2. Such properties come along with tons of amenities and facilities. So if you intend to buy 5 Marla homes in Multan, you have a better chance of investing and affording the place because all payment plans can be paid in quarterly installments. Sadly, rent cannot be paid in installments.
How are your finances?
Almost similar to the above question, ask yourself how many housing expenses can you afford once the downpayment is paid.
It’s important to evaluate your current debt to income ratio and your savings. After analyzing your finances, you can pay a loan more efficiently and on time too. But if you are short on finances, house hunting options will become limited.
Renting a home can be a better option in such scenarios. Understanding your available finances, you should pursue the option that best fits your bank account.
Is it the right time to buy a house?
Buying a new house is a stressful job. It takes your time and effort and may as well suck the energy out of you if it’s urgent. If you have lost a job or are low on savings, put house hunting on hold, calculate your finances, keeping the time frame in mind.
Maybe you are planning to get married soon and want to settle before the actual ceremony. Usually in Pakistan, a newlywed couple buys their home after the wedding. Either way, at this time, it’s a sound option to buy a house instead of renting. So depending on your accommodation priorities, you can either rent or buy within enough budget. Housing societies are a good option, to begin with in both cases.
Is it better to buy instead of renting post-pandemic?
Let me say this straight – property rates skyrocketed the minute the pandemic started to slow down. During the pandemic, rents and plot for sale prices decreased due to the drowning economy. However, now because of inflation, rates are higher than ever. Many people put off buying a house during the pandemic, which was a smart thing to do.
But since expenses are sitting idle waiting to be dealt with, it is high time you start house hunting. Housing schemes in Multan provide you with the perfect opportunities to buy plots at reasonable rates.
When should you switch from renting to buying a home?
The time-lapse varies from person to person. Most people are under the impression that 1% to 3% of your total expenses are spent on maintenance costs. Adding the property tax into the mix doubles the money spent.
Suppose you are skeptical whether the property you bought last year will increase in market value. In that case, we suggest you buy a plot or a constructed house in ultimate locations similar to Citi Housing Scheme Phase 2 in Multan. If not, you can always look for more options within the city. Property rates in housing projects increase over time.
Home investment is always a better option in the long run. However, keeping the external factors in mind, renting can be a suitable option for you until you save enough money to buy a plot to build a house.
Whether renting or buying a home depends on the factors discussed above. If you own a house, your space is personal, make adjustments as you see fit, and result in a greater ROI with time.
Plus, do keep the taxes and maintenance costs in mind too. So if you see yourself living in your own space, plan it wisely.