Let’s be honest. Buying property is not for everyone and neither is renting. This is why we have to take a close look at the pros and cons of each in order to make an informed decision.
-Let’s start with renting:
Pros of Renting: Renting requires less upkeep and maintenance, and it can be a cost-effective way to live for someone who is on the go, and also if you have already invested in property it can be a way to transition into a “Paid for Lifestyle,” when your rent, etc. is being paid for by your investments.
Cons of Renting: The cons of renting are simple: lack of control. You don’t control the heat (All of us who have had to grab that extra blanket or electric heater know what I’m talking about), price, exterior upkeep etc.
Now Let’s Talk About Buying
Pros of Buying: Buying equips owners with a very important tool: options. As an owner, you can choose to live in your home “as is” or you can make improvements to it over time. But you can also rent it out for cash flow (AKA the make money while you sleep money), increase rents/cash flow, transition the property into a business entity, borrow against the equity of the property to repeat the process, and finally sell the property with the potential of making money even after you have lived in and used the property for years.
Cons of Buying: the cons of buying are severe, but as with any investment; if there is a potential for a greater reward there will typically also be the existence of the potential for a greater loss. For example, if you happen to save up and buy that dream home, it can quickly turn into a nightmare, if you did not run your numbers correctly or if you do not have enough money left over to withstand unexpected issues. It is also possible to buy a property that you were told would generate a certain income amount, but then when you close on the property you find out that you are losing money each month. In addition, buying usually requires more of an initial financial investment than renting and if you change your mind it could potentially cost you a lot more to get out.
So which choice is the right
“It’s Time to Start Living Prime”