With so many students getting to University, many wonder if they should buy or rent a house. On the one hand, it makes a lot of financial sense, but on the other, factors like affordability come into play. Owning a home while in university is a hard gamble. You can have a successful time or end up a failure unable to pay off the mortgage, or even maintain the house. Before deciding whether to buy or rent a place, you must weigh the pros and cons of each. Let us take a more in-depth look at them.
Benefits of Buying a Home
- There are numerous real estate terms to know that will help you better understand the process of buying or renting a home. Buying real estate in university areas is an excellent investment. It gives a sense of security, always knowing you have a place to stay.
- You can rent out rooms in the house to other students or tenants to help pay your mortgage.
- It is a tax write-off
- It can be a way of earning rental income in the future.
- You can sell it and get a better place after you are done studying.
- You build equity and credit as you pay off your mortgage, which can be used to buy a home in the future.
- It is a great learning experience, and you get to know what to do when purchasing your next home. With online mortgage brokers like Habito, you can easily get a mortgage premium you can afford to pay off.
Downside of Buying
Even with these perks, buying a house while in university has its downside.
Being a landlord is hard and stressful. You are liable for maintaining the residence and ensuring all your roommates pay off the rent and expenses in time. It can distract you from focusing on your studies.
There are additional expenses that come with owning a home; these include property taxes, homeowner’s insurance, maintenance costs and more.
Perks of Renting
- It is cost-effective, and you save a lot of money that would be used for repairs and maintenance
- To rent a place, you do not need a lot of equity. Once you have identified a place, contact the realtor and move in.
- Renting gives you flexibility as you are not tied down to a place. It also gives you freedom in case anything happens; you can leave without any worries. If you own a home and a hurricane or fire destroys your house, it can be hard to start from scratch.
Downside of Renting
There is no security. If you don’t pay your rent, you can be easily evicted. Getting a decent, rent-friendly place to live can be hard. You have to compromise on a lot to get a place you can afford.
At the end of the day, it will all depend on your situation. Keep these few tips in mind when deciding what’s best for you. Whether you rent or buy, the most important thing is to be sure you can meet the perks of the deal you choose.
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