Buy, Build, or Rent? Ask Yourself These Questions to Decide

Buy, Build, or Rent? Ask Yourself These Questions to Decide

One of the main things that is associated with growing up is finding your own living arrangements. While there can sometimes be pressure to buy, you can also choose to build on land or rent an existing home; some individuals might even decide to live on the road in a campervan! It can certainly be challenging to resolve, especially if this is your first time living away from home.

In this article, we are going to discuss some questions that you should ask yourself so that you can choose between buying, building, or renting. Sound interested? Then keep on reading!

What is my budget?

The very first question to ask yourself before choosing a living arrangement is what your current budget is. If you don’t have a deposit ready, then you aren’t going to be able to build or buy straight away. However, some rental properties do require a small bond. In the US, the average home listing price sits at $226,800, but this can vary.

If you do have a deposit, then you need to consider how much you will be able to borrow and what the monthly payments will be. Just because the bank is going to lend you the money doesn’t mean you can pay it off! You’ll need a steady income and extra for any interest that you will be paying over the years.

What desires do I have?

Every person has their own individual interests, and this may impact what you will ultimately choose. For example, if you wish to renovate or design your home, that isn’t possible with renting. Even buying has its limits, as there may not be a home available with all of the additions you want.

By figuring out your needs and wants, you can narrow down your possibilities and number of properties to the right ones. It might take a while, but it’s better than being stuck somewhere that you aren’t happy with.

Where do I want to live?

As well as choosing what desires you have for your home, you want to think about where you are going to live. New builds are often on the outskirts of a town, while existing buildings might have better access to individual facilities such as schools, bus stations, and shops. 

On top of this, smaller towns will have more houses, while cities have more apartments. By knowing where you want to live, you can start doing your research to see what is available.

How long do I expect to stay here?

Some people get so worked up in wanting to move that they often don’t think about how long they are going to stay in a particular area. Rentals offer much more flexibility as you aren’t tied down to a property; you can even find short-term options for as little as a few weeks. 

This makes it perfect for individuals that frequently move for work or other reasons. If you want something long term, they aren’t always a good choice. You may have to leave rather quickly, depending on the length of your lease. It’s better to have a plan for the future than suddenly regretting your decision.

Can I afford any hidden costs?

If you decide to either purchase or build a home, there are certain things that you need to consider. It’s not just the initial cost you need to worry about, but also all of the other fees involved in the buying/building process. Home inspections, stamp duty fees, and real estate agent costs can quickly add up, and these are things you will need to initially budget for. If you can’t afford it, then you might want to find another solution until you are financially ready. You don’t want to end up with debt that you can’t pay off.

Do I want complete control?

If you want absolute control over the entire process, then building a house is going to be the best choice. You have the ability to design the structure and pick all of your contractors and individual materials. While there are still certain limits, you can be much freer than with an existing home or rental. It will also be much more environmentally friendly than an older house.

Alongside this, you aren’t able to make any major changes to a rental without permission from the owner, and while you can renovate an existing home, there are certain situations that can arise. There may be hazardous construction materials present, leaks, and pests that can put you months behind your initial finish date or even halt your renovations altogether. 

Can I sacrifice flexibility? 

As mentioned above, how long you will be staying in an area can impact your decision. When you buy or build a home, you may be required to stay there for a certain amount of time before selling or making it into an investment property. However, when you rent a house, you aren’t tied down to a specific location and can move quickly if need be. You need to ask yourself if you are ok with sacrificing this flexibility.

What will happen if things don’t work out?

One of the last things that you need to consider is what you will do if things don’t work out. For example, if you purchase a home and cant’ afford the repayments, what path will you go down? If you get moved out of your rental, where will you live until you find another? These questions are vital in figuring out what will be the best option for not only yourself but your family as well.

And that’s it! By asking yourself the above questions, you will hopefully be able to narrow down your options and choose what is right for you. It might seem overwhelming, but the more research you do about each of the above, the easier everything will be. Just remember to go over everything with your partner if you will be buying together!

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