Shelter is a basic need of every human and the question we often ask ourselves is should I rent or buy a home? Whether to rent or buy has been a continuous debate and the points for arguing for or against keep expanding, making it harder for people to decide.<\/p>\n\n\n\n
Let\u2019s look at renting a home<\/h2>\n\n\n\n
Almost every person starts off as a renter living in an apartment or home owned by someone else and paying monthly rent to a landlord. For some, renting might just be a way to start out and then gradually grow into buying their own home while for others renting may be the most prudent financial decision in the long-run.<\/p>\n\n\n\n
Benefits of renting a home include:<\/p>\n\n\n\n
- In most cases you are only\nobliged to pay agreed rent and other utility costs which are stated in the\nrental agreement.<\/li><\/ul>\n\n\n\n
- More flexibility: As a\nrenter, you don\u2019t feel stuck with just one property for years, you can easily\nrelocate.<\/li><\/ul>\n\n\n\n
- Renters are not\nresponsible for major repairs.<\/li><\/ul>\n\n\n\n
![\"Renting](\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Buying-or-Renting-a-House-Bondora-1024x538.png\")
<\/figure><\/div>\n\n\n\nBut they don\u2019t come with some downsides:<\/p>\n\n\n\n
- As a renter you don\u2019t get to retain any equity or part-ownership of the property of which you\u2019ve been paying rent for. <\/li><\/ul>\n\n\n\n
Is buying better then?<\/h2>\n\n\n\n
It\u2019s fair to say that everyone has dreamed of owning their own home at some point. But are they really worth it?<\/p>\n\n\n\n
Some benefits of buying include:<\/p>\n\n\n\n
- You have absolute control over your property.<\/li><\/ul>\n\n\n\n
- It is possible that the value of your home will increase over time. <\/li><\/ul>\n\n\n\n
Still not everything is great:<\/p>\n\n\n\n
- Owning a home is a liability as long as you are still paying the mortgage. <\/li><\/ul>\n\n\n\n
- All the maintenance costs and repairs are on you, and you need to include this in your personal budget. There are also other costs you may have to be prepared for like insurance, property tax, and so on. <\/li><\/ul>\n\n\n\n
- The cost of owning a home can be very expensive depending on the city, like London, Berlin, Helsinki, Florida, and in other parts of the world. <\/li><\/ul>\n\n\n\n
![\"Home](\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Home-is-where-story-begins-1024x683.jpg\")
<\/figure><\/div>\n\n\n\nSo renting vs. buying, which is better?<\/h3>\n\n\n\n
The decision to rent or buy<\/a> is a personal one which everyone has to make. Either way, you need to understand all the pros and cons of the two sides. For example, renting could be a better option if you are planning to stay for just a few years while buying could suit you more if you intend to stay for a longer period of time.<\/p>\n\n\n\n
One of the ways we can invest towards buying while we are still renting is Bondora\u2019s Go & Grow<\/a> which yields up to 6.75%* annual net return.<\/p>\n\n\n\n
In summary, you should weigh the financial implications and see how it fits into your financial goals before making your decision.<\/p>\n\n\n\n
If you enjoyed this video then remember to subscribe to our YouTube channel<\/a> so you don\u2019t miss out on more interesting topics like this in the future. Thanks for watching, keep investing and see you next time.<\/p>\n\n\n\n
- The cost of owning a home can be very expensive depending on the city, like London, Berlin, Helsinki, Florida, and in other parts of the world. <\/li><\/ul>\n\n\n\n
- All the maintenance costs and repairs are on you, and you need to include this in your personal budget. There are also other costs you may have to be prepared for like insurance, property tax, and so on. <\/li><\/ul>\n\n\n\n
- Owning a home is a liability as long as you are still paying the mortgage. <\/li><\/ul>\n\n\n\n
- It is possible that the value of your home will increase over time. <\/li><\/ul>\n\n\n\n
- You have absolute control over your property.<\/li><\/ul>\n\n\n\n
- As a renter you don\u2019t get to retain any equity or part-ownership of the property of which you\u2019ve been paying rent for. <\/li><\/ul>\n\n\n\n
- Renters are not\nresponsible for major repairs.<\/li><\/ul>\n\n\n\n
- More flexibility: As a\nrenter, you don\u2019t feel stuck with just one property for years, you can easily\nrelocate.<\/li><\/ul>\n\n\n\n