If Shakespeare were still alive today, I’m quite sure his most famous quote would be ‘to rent or to buy, that is the question!’
It’s a dilemma almost every person looking for property is faced with and one that isn’t easy to decide upon. After all, buying property is the biggest investment any person could make, unless you’re part of the richest 1% – then the biggest dilemma would be: should I buy a new super yacht or a space ship?
To come to a decision about this, there are various things you should take into consideration, and there are pros and cons on both sides.
Should I buy?
The most obvious pro of buying a house is that once you’ve finished paying off the mortgage, the house becomes yours. You can do it up as you like, so long as MEPA approves (“Please okay my permit, MEPA, PLEASE!”), and you will never need to pay rent.
It also becomes part of your financial portfolio and you can use it as equity to buy a new, larger home somewhere else. And, when you retire, you won’t have to worry about paying rent either – which is great when you don’t have a steady income coming in.
But owning a house is not cheap. On top of forking out a monthly sum to pay off your loan, you will also need to pay for any maintenance work needed and you will always need to have some money set aside for any unforeseen problems.
Moreover, owning a house can sometimes be quite restricting in terms of mobility. For example, if you want to move because of work, you can’t just up and leave. You’ll have to go through the whole process of selling, something which renting avoids altogether.
Should I rent?
Renting is great for those who have just embarked on their career and want to move out, and it doesn’t require you to save up the 10 per cent needed to take out a loan. It also acts as a stepping stone towards your independence and allows you to enjoy your downtime however you would like to.
Your landlord will also be responsible for many of the things that can and do go wrong with the house, and thus you don’t need to worry about being hit with an expensive bill out of the blue.
But renting is basically giving money to someone else for living in their house, and renting a small flat in St Julian’s can cost you more per month than a mortgage repayment for a large house in Qormi. In fact, it is often cheaper to buy than to rent!
So what should I do?
I’ve always believed that if you find a house you love and you can afford it, then you should buy it. But if you’d like to move out or can’t afford to save up the 10 per cent, then renting is a good alternative that will give you the freedom you require while allowing you to plan for your future.
And, if you just don’t want to shoulder the responsibility of being a home owner, then that’s cool too!
Well, that’s my advice, kids! But I would like to hear what any real estate agents and property experts think about this, so hit us up!
You’ve read Evelyn’s drill!
Let us know what you think in the comments section below.