Owning a real estate: pros and cons
Real estate market is very easily changed and new trends may emerge as often as every day. We already what are the real estate trends of 2017, but that might not be the case in the upcoming year. Because of the uncertainty, and the fear of great financial losses, people often dread owning a property. But, on the other hand renting can be just as expensive. The important thing to have in mind is that there is no right answer, that is universal and always applicable. Every situation is different and you should be able to decide for yourself. This will be easier to do once you have all the facts. Read here about all the pros and cons of owning a real estate. Once you have all the information, it will be that much easier for you make the best decision.
Owning a real estate means having all the freedom
There is nothing better than having your own home. You have all the freedom and liberty, and the value of your property will probably go up. Owning a property also means that you can sell it, invest in it, find another use for it. Any money you put into it will return, and your everyday life will for sure be easier. If your house is big enough, you can make sure that you have taken care of your entire family, or even extended one. In today’s fluctuation economy having a roof over your head is not something to be taken lightly. Actually, it’s a luxury many can not afford. Is it all so peachy? Well, not so much. Being a homeowner has its ups and downs.
But, it also means having all the responsibilities…
- Documentation and permissions – Being a homeowner means having to take care of all of the papers, permits, licenses and so on. It can really seem more than overwhelming. Do your homework beforehand so you will know what documents do you need in order to own a home.
- Hiring real estate agents – This is something you have to do before you do anything else and it isn’t always easy. Working with real estate agents for the first time can be pretty challenging, so make sure you know what are you looking for before approaching one.
- The costs of owning a real estate can be pretty big – Having a home means taking care of a lot of additional fees, some you didn’t even know about. For first time homeowners, costs can be very challenging. Many people go into debt and create a lot of future financial trouble. Have this in mind before buying a property.
- You need to think about all sorts of insurances – There are too many home-owning insurances to count. Check out the video below for more info:
Renting a real estate property gives you a lot of flexibility when it comes to making plans for the future
Although it is quite clear what are the benefits of owning a property, there has to be a certain downside to it, that isn’t related to the cost. Well, the biggest downside of owning a property is having to stay in the same place for a long time. Although it is possible to sell and buy a house, people don’t make these decisions lightly. That is why, if you are not quite sure where do you want to settle down, you should continue renting.
If you are a student, a young couple, or someone whose job requires a lot of moving around, owning a property might not be the wisest decision. Although quite beneficial it carries a lot of responsibility and perhaps that is something you are still not willing to have. Many things in life – such as owning a real estate – will come sooner or later, without us rushing it. Give yourself a bit more freedom, and enjoy it while it lasts.
But, it also limits you in terms of modifications to the property itself.
We have mentioned in which situations renting is a far preferable option. And there is no doubt about it, renting is way less complicated and requires less energy, money and time. But, renting also has its downsides, so let’s have a look, shall we?
- You will always be in someone else’s home – This isn’t something that can easily be neglected. Any changes, any decorations and installing of new service has to be reported. If your landlord decides so, you can not do something. In the long run, this can be pretty exhausting. That is why many people prefer owning a real estate and having all the freedom.
- When you are not the homeowner you have no decision making powers – Not owning a property means having no say in what happens to it. What if the landlord decided to move? Or to charge you more? Or to do anything that he has the right, but it is a disruption of your everyday life? Even when landlords are nice and understanding, there are still things that will be beyond their control. You will be kicked out and forced to find a new home. Now that can be pretty exhausting.
Did you know that in the end, it might even be more expensive?
Paying a little bit every month, and not having anything in the end… That is surely not a long term investment. Perhaps you are too young to buy a property, but one day you will be too old to still pay rent. All of that money accumulate might be more than enough to buy a real estate. If you had only started saving in time… Always have a long term plan in mind, so that you won’t be stuck in the future when you want to settle down and start a family.