Rent if You Have No Intention of Staying in Any One Area for Long
According to an article by Bostock, Carter, and Tse for the The New York Times , buying is usually the better option if you are planning to reside in the same location for a very long time. This is because all of the fees that you will be paying will start to be more worth it, that is, you can start dividing the total cost of the house or apartment by how many months you plan to stay in it.
Think of it this way: when you buy any gadget, the total cost of it upfront tends to be a large amount, but the longer you use it, the more you are getting value out of your purchase. Say you bought the gadget for RM 2000. If you use it for one year, and divide the total cost by the total number of months you have been using it, that means it is the equivalent of shelling out RM 160 or so every month to pay it off. If you use the same gadget for five years, then you can divide it by a larger number of months, making it the equivalent of paying only around RM 30 or so for it per month.
The same goes for any property that you buy. If you intend to live there for a long time—maybe even for the rest of your life—then the cost will pay off for itself over time.On the other hand, if you are only planning to stick around for the short-term, then the upfront costs will be too high for the amount of time that you will actually be taking advantage of it.
Rent if You Want More Flexibility When It Comes to Switching Jobs
If you buy a house or an apartment, you tend to be stuck looking for options that are nearby. This applies to education—that is, what colleges or universities you can apply to that will not be too hard to get to—as well as work. After all, it can be stressful having to commute or drive to a workplace that is an hour or more away from where you live. In this case, renting may be a better option, especially if you do not see yourself staying in the same job for more than a few years. It does not seem to be a wise decision to buy a property if you plan on looking for a new place to work. Because the job market can be tough to navigate, you cannot say for sure if you will be landing a job in the same place that you bought your property .
Even if you do stick around in your current job for a long period of time, some surprises may come your way. Depending on how large the company you work for may be, they might ask you to transfer to another branch that is located in another part of the country or, worse, to an entirely different continent or country all together. If you are still putting money down toward a mortgage loan, you may not be able to have the extra money to afford to rent another place in another location.
Rent if You Want to Have Less Fees to Pay for Every Month
If you do not have a lot of cash to spare, or are simply looking for more ways you can save some of your money, then you may want to consider renting a property instead. This is because lessors tend to divide the cost of the utilities by the number of tenants that they currently have, according to an article by Annamaria Andriotis for The Wall Street Journal . Renters, in general, do not have to pay the kinds of fees that buyers do, such as home insurance and property taxes. Renters usually do not have to pay massive down payments or closing fees as well.
Also, depending on the contract you have with your lessor, more often than not, you do not have to pay for any repairs needed in your unit or house. In most cases, it is the lessor who will shell out money for anything that breaks within your home. If you also manage to find a place that is fully furnished, then you will not have to invest that much money in buying tons of furniture, utensils, and appliances. Sure, your rent may be a little higher each month compared to an unfurnished unit, but at least you no longer have to deal with the stress of looking for and buying the perfect items for your residence.
In addition, while some renters may not end up with a piece of property that they can pass on to their children, they will have extra money because of the savings that they can gain from the smaller number of fees to pay. Though they may not have a house or apartment that they can sell later on, they can look at it another way and invest the extra cash instead. Renters may even be able to make more money than buyers, as they will not be funneling their cash into a physical asset such as a house, which a buyer would either have to buy or sell in order to make some additional income.
In Short: Rent if You Do Not Want to Commit to Buying Something You May Not Use Forever
Though we have outlined several good reasons why you may want to consider renting a property instead of buying one, it still boils down to what you personally want for yourself in the long-term. If you are the type of person who would rather put your savings toward travel expenses instead of a permanent structure to live in, renting may be the option that suits your lifestyle best. If, however, you see yourself settling down either by yourself or with a family and would like to start a new life in a nice neighborhood, and you would like some property to pass down through your family’s generations, you might lean more toward buying instead of renting a unit or house out.
Regardless of your final decision, make sure that you decide based on your own desires, needs, and goals, and do not simply base your choice on what other people think may be best for you.
Article By Susan Smith
