To buy or to rent in 2020?Bconnectedmallorca Real Estate
To buy or rent? An important question we are all interested in at one point or another, therefore we have put together our thoughts on the best option for 2020.
Obviously, there is no easy answer to this as there are many factors that need to be taken into account for each individual. It’s around 60/40 of people would believe buying is a better option than renting. This may be very likely due to an increase in price of rentals over recent years.
The advantages of buying your own home are many. It becomes an asset, a long-term investment that you sit on. It can be yours at the end of a mortgage (or not) with no expenses to pay which gives you stability. You can make whatever renovations that you like, making it your own special space which is a very important part of what a home means to someone, it’s our hideaway and somewhere we are at peace. Therefore, taking your time in the decision-making before buying is of utmost importance. Ultimately, buying your own home gives you both emotional and economical benefits long term.
Along with the many advantages to getting on to the property ladder and having your own home, come a few disadvantages. These being that your finance will be tied down on a mortgage for quite some time to come, depending on which kind of loan you have. This includes bank interests that add up in the long haul.
Lastly, owning a home may restrict you travelling to new places, if you have a change of heart and looking for a new city. However we like to see the positive side to everything and if you decide this and have a mortgage perhaps a financially beneficial idea would be to rent this new home out to pay off your loan in the meantime, whilst giving you room to move to a new location.
There is a general rise in rentals of homes in recent years as more and more people are deciding to rent instead of buy, as more and more people are choosing to rent rather than buy, mainly due to greater financial and geographical flexibility to move if desired, depending on each person's living situation. You can test out different areas before you decide to buy somewhere which is definitely helpful, instead of being tied down to an area for years on end.
These are all factors to consider when making your decision and a lot of your decision is personal and depends on your current situation in life, however if you’d like to have some help on the matter, one of our real estate agents would be happy to lead you through the process.