You’re at the stage of your life where you have just enough money to be troubled with the question whether you should rent or buy a property. Renting seems cheaper, but in the long run does it turn out to be more expensive than buying a property? Of course, both renting and buying come with their own list of pros and cons, and experts at Swami India Ghana Ltd, leading real estate developers in Accra, are here to discuss them all.
Should you buy a home?
The first question to ask yourself is ‘can you afford to buy a home?’ Usually mortgages require an initial payment, which is pretty high, and sometimes turn out to be higher than that of the rent. If you can afford it, then here are some pros and cons to keep in mind.
Pros: All the money you put into it, whether through monthly installments or a downright payment goes towards you becoming a homeowner. Once you have completed your set of payments you don’t have to pay anymore, unlike in renting. What’s even better is that if the property price goes up, you can even make a nice profit. But more importantly it gives you the freedom to live life on your own terms. You can make renovations or own a pet – it’s all up to you, once you are the owner.
Cons: You may have invested in a property and you may need to move. Since the market can fluctuate you may not make a profit on it. All the repair work will have to be borne by you. The down payment is expensive and let’s say you have gotten into a joint mortgage with a relative or friend, walking away may get complicated and expensive.
Isn’t renting just cheaper and causes less complications?
Yes, renting is cheaper in the short term. Additionally, you can move from one property to another whenever you need to. You are not tied down to mortgages etc. You don’t lose money if the market falls and you never need to pay for repairs or renovations. But the biggest drawback of renting is the money that you spend on rent doesn’t amount to anything. It doesn’t go into owning a property and you constantly need to pay up. There is also no freedom because the landlord can ask you to leave or stop you from bringing pets to the home or carry out some design changes, which at the end, would benefit the landlord even if he or she allows it.
How should you decide?
Deciding whether to rent or buy then rests on two main factors – affordability and personal flexibility. Can you afford to buy the home, or do you earn just enough to afford rent? Do you want to settle down here, or is this a temporary arrangement? Renting is a good option if you’re looking for a temporary accommodation but buying the property will pay off in the long run, where you can live rent free for the rest of your life with your family.
If you have more questions, do get in touch with our experts at SIGL and we’ll help you decide what is the best option for you.