Buy or rent,
that’s the question
“Look, are you going to rent? That’s such a shame in this day and age! Buying is really more advantageous, you know,” says friend 1. “Your first little house together? No way, I would still enjoy renting for a while if I were you, buying can always be done later,” says friend 2 less than a week later. My boyfriend and I want to go live together: you understand the confusion.
Dear people, I don’t understand anything about the whole housing market anyway. You don’t either? Well, then it’s time for a little course on Buying or Renting for Dummies. I dove into the depths of the internet and think that I -yes, certainly by the way- have become a lot wiser. Are you also unsure what the right choice is for you? Then here are five questions you should ask yourself.
1. How long do you want to live in your new house?
In principle, I read on almost all advice websites and real estate blogs (yes, they do exist, and most of them are quite nice too) that buying a house it only becomes more advantageous if you want to stay for at least five years. Are you unsure if you can manage that? Then renting is smarter. Because you can easily get out of that rental contract.
2. Are you looking for a house alone or together?
If you’re in your early twenties and have just been in a relationship for half a year, then it’s (without tempting the gods, of course) a bit premature to buy together now. If you’ve been together for ten years, then it’s a completely different story. Are you alone and can you afford it financially? Then buying is smart.
3. Do you have job security?
If you plan to buy a house, you need to be sure that you can handle your mortgage payments for the next several decades. Are you both steady at work? Permanent contract? Planning to live in that place for more than five years? Then it might be smarter to inquire about buying houses so you can invest your money right away.
Dear people, I don’t understand anything about the whole housing market anyway. You don’t either?
4. How do you see the future?
If you strongly lean towards buying, it’s also useful to think about a potential desire for children. Do you want to work less then? Even then, you need to be able to keep paying the living expenses.
5. How much freedom do you want to have?
In the broadest sense of the word. Renters are flexible and can, for example, go on a world trip whenever they feel like it. You deregister and off you go. Buyers have freedom because they can customize the house to their taste. Renters usually have to return it to its original state.
In short: whether it’s smarter to buy or rent depends on several factors. Buying can be smart if there’s a good chance you can stay in that place for years. If you’re adventurous and your life looks practically different every year, then I would (just for a while) enjoy renting if I were you. A purchased home does protect your money in the long term against inflation and you build something up. And yet, I don’t think you’re throwing money away when you rent, because you do have a nice house to live in. Oh, and another advantage: you can call the landlord when something breaks (you really have to pay for all that yourself with a purchased home). Well, the confusion has just been completely resolved by writing this article. You understand where I lean, right? Definitely renting. If you want to take a detailed look at all the pros and cons of buying/renting, I would advise you to check out the website of the Nibud to search.
And, if you happen to know a good realtor for rental properties in Utrecht, please email me at kiki@amayzine.com.
