Should You Buy or Rent a Home?: Advice for Newlyweds
Renting and buying a house have their own unique advantages, but which one’s right for you? Here’s our advice for newlyweds.
Marriage is one of the most exciting chapters in life. For most couples, marriage signals the beginning of a new home. But it could also be very overwhelming. One of the challenges newlyweds face is finding a home to start their family. And the question usually is: should you buy or should you rent a house?
To help you decide, we present some of the benefits of buying and renting a house. We also share some expert advice for newlyweds looking for their new home.
Why you should rent
Buying a house is not for everyone… yet. Many financial advisers would suggest against buying a house early in the marriage, as it may cause more financial constraints for newlyweds. If you’re still building your finances, renting a home may be a wiser option.
Here are some benefits of renting:
- Renting gives you the flexibility of living and moving anywhere, even in big cities. Homeowners, on the other hand, are limited to locations that fit their budget when buying a home. If you’re planning to start your family in a big city, renting for the first few years will help you find the ideal neighborhood for your dream home.
- Tenants usually don’t have to pay for maintenance or repair. The landlord usually takes care of all the maintenance and repairs of the property. When the roof leaks, for example, tenants just have to contact the landlord to have it fixed. On the other hand, owning a home will require maintenance and repairs costs, which could be pricey.
- Tenants enjoy access to amenities that sometimes go with the rent. If you rent a condo, you get access to facilities like in-ground pools and fitness centers, which are usually available to tenants without added charges. These amenities only cost monthly fees for condo owners. Homeowners, on the other hand, have to spend a lot of money to enjoy these luxuries.
- If you rent, you can save money on real estate taxes. Unlike homeowners, renters don’t have to pay property taxes. Real estate taxes could cost thousands of money annually depending on the location and size of your property.
- Renters don’t have to pay high monthly mortgages. When you buy a house through financing, chances are you’ll have to get mortgages, which can put a dent in your monthly salary. If you and your spouse are not financially ready for monthly mortgage payments or haven’t saved enough for a down payment, renting is the wiser option.
Tip: If you plan to rent, determine your budget first and consider your future monthly expenses. Then save up.
Why you should buy a house
If you and your spouse have already saved up enough money even before you got married, you might be ready to purchase a house. While renting can save you money during the first few years of marriage, you would eventually want to settle down in your dream home as you grow your family.
Here are some benefits of buying a home:
- Owning a house gives a sense of stability and settlement for your family. When you own a home, you don’t have to worry about next month’s rent or finding a roof over your head in case of financial difficulties. This gives your family more security and comfort.
- When you own a home, you have the liberty to decorate and renovate it. This is a great advantage for growing families. Whether you want to add another bedroom or convert a spare room into a playroom, you don’t have to ask for anyone’s permission (except for your spouse’s, of course).
- Buying a house as an investment has several financial benefits, which include appreciation and home equity. Housing properties usually experience appreciation—the increase in home market value over time. Home equity, which is the difference between how much you still owe on your mortgage and your home’s market value, will also build over time. If you live in the house for a long period, the property will eventually increase its market value and equity. This means that you can earn a profit if you sell the house in the future.
- Depending on your country’s tax laws, owning a home can give you tax benefits. In some countries, homeowners enjoy tax deductions by subtracting some of the homeownership expenses (such as monthly mortgage interest) from the taxes they pay to the government.
- Unlike renting, owning a house will give you complete freedom on the things you want in your home, such as owning a pet. You can adopt a dog or plant a vegetable garden without having to ask for approval from a landlord. What’s more, owning a house will give plenty of privacy to your family.
Tip: If you’re ready to buy a home, search through online property apps, such as Ziba Property, to find candidate houses. You should also list all the features you want in your home (number of rooms, etc.) before the house hunt to save time. (For more househunting tips, read our article here.)
Should you buy or rent?
Buying or renting a home depends on several factors. Before making the decision, you and your spouse should consider the following:
- Overall expenses. Before signing the contract, make sure that you are financially ready to cover the overall expenses on a yearly or monthly basis. Buying a home will require down payments and mortgage payments, which could put a dent in your monthly paycheck.
You also need to remember that expenses add up. Aside from the monthly payments, you may also need to pay real estate taxes, home insurance, mortgage insurance, and maintenance and repair costs.
- Five-year plan. Before buying a home, you and your spouse should create a five-year plan. It’s important to know how long you will be staying in a certain place. If you want more flexibility, then renting would be a better idea.
When buying a home, the general rule is to stay in that property for at least five years or longer. This will benefit your family financially and emotionally.
- Lifestyle. The type of lifestyle you and your spouse want is important when deciding on the location of your new home. If you crave a city lifestyle, renting is a better option if you haven’t saved enough money yet.
- Job security. Before you get a home loan, make sure that your current job can sustain your new family’s lifestyle and monthly mortgage payments, as well as other home expenses.
- Growing a family. If you and your partner have found the perfect location to grow your family, buying a home is a great decision. This will provide your future family members the stability of having a secure home.
Buying and renting a home have their own advantages and disadvantages. Buying a home offers a sense of stability that is beneficial for your family in the long term. However, it’s not for everyone. For newlyweds who are still navigating their married life, renting a home will give you enough time to decide where you want to settle down.
Whatever your decision may be, it’s important to discuss it carefully or seek professional advice. Using property listing apps, such as Ziba Property, will help you find expert real estate agents who could assist you in this journey.
Are you looking to buy or rent a condo? Check out Ziba Property to find the best apartment and condo for rent or sale near you. Ziba Property is a property listings app that connects you to property managers, landlords, and real estate agents worldwide. To learn more, download the app on Play Store and App Store.