Are you thinking about starting a family? If so, then you need to ask yourself an important question. Should you rent or buy your family property? People often assume that the answer is obvious and that you should always buy a home. However, this is not the case despite the problem with dead money. There are a lot of factors that must be considered before settling on the right choice for you.
Can You Afford To Buy?
First, you need to consider whether you can afford to buy. It can be difficult to save up the money you need to buy a home while you are renting. This is why many people approaching thirty are still living with their parents. They do this so that they can build up the right amount of money that will allow them to put a mortgage down on a property rather than renting for a significant period. Don’t forget that you’ll need a significant deposit and you will also need to ensure that your income is stable enough that you can manage the mortgage payments. If you can’t do this, then buying a home will ultimately be a money trap.
Are You Ready To Settle?
Next, you should consider whether you are ready to settle in one place with your family. If this isn’t the case, then it might be best renting to ensure that you still have a lot of freedom. People tend to assume that it’s easy to move again once a home has been purchased. However, research suggests that selling a home is one of the most stressful experiences that you can face in your adult life. As such, you probably want to avoid making multiple unnecessary moves throughout your life.
Can You Afford The Extra Costs?
You also need to think about the extra costs that come with owning a property. When you own a property you will be responsible for completing any repairs on the home and these can be significant. If you rent, your landlord will be responsible for the cost here and if they don’t complete the work then you can seek help from a housing disrepair claim solicitor to gain compensation.
Do You Want To Maintain A Home?
Finally, you should consider whether you have the time, money and level of commitment to maintain a home. If you don’t have the energy or time to maintain the home, then you are going to struggle to gain the benefit of selling it for a profit in the near future. Something people often forget is that a home will only sell for the right price on the market if the right changes are made. If you don’t do this, then your property could end up selling at a loss. This is actually worse than the problem of dead money that comes with renting.
We hope this helps you understand some of the key factors that you should keep in mind when you are deciding whether to rent or buy your family home. By making the right choice, you can keep your finances healthy and your stress levels low.
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