Pros and cons – depending on your situation
Buying a home can offer stability, the ability to redecorate the rooms to your taste and the opportunity – if you can sell for more than you bought – to make a profit.
Renting a home, on the other hand, can offer increased flexibility to more easily move for a better job and may free up time and money that owners spend on maintenance.
As the video Rent or buy? explains, there is no one answer to this question that is right for everyone.
There are many pros and cons – some financial, and others to do with individuals’ stage in life and situation.
According to 14,000 people…
The 2014 ING International Survey on Homes and Mortgages asked almost 14,000 in 14 countries if they agreed it was better from a financial point of view to own a house than to rent.
The overwhelming majority agreed – rising to a high of 89% in Luxembourg, 88% in Romania, 87% in the Czech Republic and Poland and 83% in Belgium. At the other end of the scale were 64% in Spain and 70% in the Netherlands, two countries that had property markets in distress after the global financial crisis.
Beware overborrowing and do a stress test
Tip number one in eZonomics’ Six tips for mortgagors is to not overborrow. It says banks typically approve mortgages up to a certain level but borrowers don’t need to take the full amount: “What you can borrow and what you should borrow don’t have to be the same.”
It also recommends stress testing personal finances to see if they can withstand changes, such as a rise in interest rates or a fall in income.
Scrutinising fees and weighing up how long the mortgage will last are other important steps.
This article is related to the ING International Survey: