The most significant financial decision you will make as an adult is buying a place to live in. Before you decide on it, you have to ensure that every aspect of your life has been considered. This includes your lifestyle, your plans, and your current needs.
To help you out, here is a detailed guide to help you navigate all these necessary considerations.
You have plenty of choices when it comes to the actual property. You can choose to live in a house, an apartment, or a condominium unit. To evaluate all your options, you have to weigh the pros and cons of each one.
Before you dive into the pros and cons of each property, it is worth knowing that there are entirely different choices. Each one has its features that the other two options don’t have.
Rent or Buy?
This should be your first question. Are you more inclined to be in a rental situation or want to own the property? The answer might depend on your bank account. But it will certainly depend on your preferences.
Renting
Renting is best for people who want flexibility and are looking for short-term stays. However, a long-term lease is also possible. You can get a 6-month contract or even monthly.
Sometimes monthly rent can be worth a property’s monthly mortgage. However, renting doesn’t burden you with the cost of upkeep and repairs.
However, there is no security. Anytime the owner puts the property for sale, you will need to find a new place again. They can also raise the rent.
Buying
Buying a property, as you expect, is expensive. Aside from the monthly mortgage, you also need to shoulder repair expenses. Maintenance is also costly.
However, you can avail of tax breaks when you declare your mortgage interest. Your house can also increase its value over time, making it a form of investment.
What Is Your Lifestyle and What Are Your Future Plans?
You also have to consider your current needs and plans. Are you looking to settle down and have your own family? Is work a priority that location is an essential factor in your decision? Do you want to live in the city? Or do the suburbs appeal more?
Or are you looking to build your own business, and you need to be as close as possible? If so, you have one more decision-making process to go through. Aside from a house or apartment, you also need to contact a commercial real estate agent for commercial properties. That way, you’ll know where to get your supplies whenever you need them for your home or business.
By asking yourself these questions, you will make better decisions about renting or buying. These questions will also help you determine what kind of property suits your needs.
What Specific Type of Home?
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House
A house will give you more space than any other option. If you want multiple bedrooms, a private pool, and a backyard, this is your best choice. You have more privacy in a house than in an apartment or a condo.
You have the freedom to call all the shots. If you want ten pets, there is no rule you have to abide by. If you’re going to renovate, you can do it anytime you want.
However, all these perks come at a rather hefty price, as explained above.
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Apartment
Whether you rent or buy, an apartment is easy to maintain. It has less space which means it’s cheaper. If you are looking for an option for a tight budget, this is it.
You have fewer responsibilities over repairs and maintenance. You won’t feel isolated since you share a wall with other people. The con also stems from that fact. You may have noisy neighbors, and you have to share some facilities with them.
You will most likely be required to pay a security deposit, but it is still much cheaper than the down payment.
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Condominium Unit
The costs of owning a condo are correct in the middle of owning a house and an apartment. Usually, condominium units are more luxurious than apartments. You have the freedom over your own space. You also have access to amenities like the pool, gym, and laundry facility. Like a house, it can also be an investment.
However, you won’t enjoy the same privacy house owners have. You also share walls with neighbors. And in some condominiums, you are not allowed to have a pet.
Don’t feel pressured to come up with a decision. This one is hard to make, so take your time. Make sure you account for everything that you need to consider.
