Should I Buy a House or Rent?
Is it better to buy or rent a house? That question may often haunt you. Or when exactly will I be ready to buy property or a house? In many cases buying a property or house is the right choice because property under certain conditions can be used as an investment. But there are conditions that are not right or it's not the time for you to buy property. What are these conditions? Here they are:
Uncertain Job & Your Income is Not StableHow many of you feel that you can live in peace and comfort right now without having to work in an office, aka part-time or project-based work?
Being able to live in peace and comfort does not mean that your income is stable. You who are in this condition, you should not buy property or house first, especially if you buy it on credit or with a loan from a bank. What is the reason? Uncertain jobs and unstable income will make buying a home will be a burden. You need to set aside emergency funds and short-term investments first as a precaution before starting a long-term commitment by buying a house or property, let alone buying in installments. So for the time being, rent it first.
Can not Commit Monthly Payments
You are still in the early stages of your career, or even you have been treading your career in the office. However, you feel that you have many other obligations such as preparing a pension fund, preparing a marriage fund (if not married), and so forth. You feel that your finances are very mediocre, so the commitment to pay monthly installments will be burdensome for you.
If you are included in this type, then you should postpone and not buy a house or property first. Why? Because if you still have "a lot of business", then you will most likely have difficulty paying your mortgage payments. And instead of damaging your name in the bank database, it's better to postpone it until you are ready. So for the time being, rent it first.
Want to get married and have many children
You are still single (alone) and want to get married to have many children. Your desire to have many children will require more space so that you will need a bigger house.
You can buy a small house first and then sell it one day and then buy a bigger house. The theory is true, but how many people can sell their houses quickly? Consider the possibility for yourself. If the possibility is small, rent it for a while. Or another solution is: buy a small house in large land so you can make your house bigger in the future.
Having a property / house (of any type) is indeed good. However, the wrong time in buying property can also result in you losing your money. That is why preparation must be done properly and correctly.
You should know, the value of buildings decreases over time because of aging and damage if the maintenance not well done. While the value of land continues to rise from year to year. So that land becomes one type of investment that can grow the same height or even beat inflation.
So, when is the right time to buy a house?In our opinion, the right time to buy a house is when you have more than enough money, a permanent job, a stable income.
If you are young and have plan to buy a house in the next few years, it is advisable to save gold or silver consistently so that the value of your wealth does not decrease due to inflation. You can buy gold little by little every month. This method will ease your burden and psychologically will help you reduce the possibility of shopping for something unnecessary. In addition, so that your wealth increases, besides relying on income from work you can start investing your money in stocks, bonds or mutual funds according to your risk profile.
If you have enough money to buy land, then first buy land at a strategic location or at the location you want. Because land prices tend to go up, it is more profitable to buy land first, then build a house in the future.
Make financial planning to buy property. Perform calculations and preparations for advances and installments properly and correctly so as not to bother later on. Just remember, it is also important for you to invest and save gold or silver. In my opinion, saving money for long time to buy a house is not a good way because the value of money tend to decrease as time flies.
Hope all af this can answer your question about Rent or Buy a House. These are just recommendations based on our perspective. You may have your own mindset and opinion.
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