How to Decide Whether to Buy or Rent Your Home
If you are thinking about buying a home of your own, you are probably considering the pros and cons that come along with it. You are going to have the freedom of modifying your home as you see fit, but you are also going to have to address the maintenance costs throughout the year as well. Deciding whether to rent or to buy can be difficult, but being educated on the pros and cons can help you make the right choice. After all, selecting a new place in which to live is a huge life decision, and you want to be sure that you are taking all of the necessary factors into account.
If you choose to buy a home, you are going to have the flexibility of being able to modify your monthly payments to suit your unique circumstances. There are many different options regarding the terms of repayment, the length of the loan, and you can also choose to make additional payments when your budget allows for it. As an added bonus, a monthly mortgage payment is likely to be more stable than a rent payment. You are also going to be able to modify your home in any way you would like, without having to obtain permission from a landlord. Furthermore, you can create an additional revenue stream with your home in the form of rental income or by enhancing the property’s fixtures to increase resale value.
On the downside, you are going to be required to make a twenty to twenty-five percent down payment when you purchase a home, which may mean saving up over an extended period of time. You are also going to be charged interest on the mortgage loan, and there are some extra fees associated with getting a mortgage through a lender. Both the interest and the fees can add up, so it is important to be aware of exactly what you are being charged.
When you are renting a UAE property, you are going to be required to pay through annual or quarterly cheques. While these payments aren’t as hefty as the down payment on a mortgage, it can still add up to a decent amount. Since you are going to be renting from an actual human being (rather than a company), you are going to be able to negotiate with your landlord to avoid any rental increases that are unreasonable. While your landlord is going to be responsible for taking care of maintenance issues, including electrical, plumbing, and lighting, you may be charged a monthly maintenance fee.
There is a certain level of flexibility that comes with renting that you don’t get when you choose to purchase a home. If you decide that the rent is getting too high, or if your financial situation changes, you can leave the home you are renting and find something that is more suitable. The downfall to this is that you are going to have to orchestrate a move each time you decide to shift locations. This means that you need to pack, organise a moving company, and set up in a completely new area.
There is no right or wrong when you are making the choice between buying and renting. Ultimately, it is going to come down to making a choice that suits your particular lifestyle. Keep an eye on the property listings in the most desirable areas, and take advantage of any periods when the prices are falling.