Deciding whether to rent or buy a home is a long-standing debate that can be quite complex. While owning a home gives you a valuable asset, it also comes with a significant cost – both upfront and over the long term. It’s important to understand the various costs and benefits associated with each option, as this knowledge will help you make an informed decision.
When considering the benefits of owning real estate, it’s important to factor in the money you’ll save on rent or the income you’ll earn by renting or leasing the property to others. Additionally, it’s wise to take into account the potential for future increases in rent, as well as the possibility that the property’s value may appreciate over time due to factors such as supply & demand, location and the condition of the property.
However, owning real estate does come with expenses that are determined by factors like:
It’s important to keep in mind that there will be additional expenses, known as closing costs, that you’ll need to pay in order to finalize a real estate transaction. These costs can vary from one country to another, but some examples of common closing costs include:
Finally, running costs should not be ignored as they significantly add up over the years. This may include:
