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Buying Vs. Renting Your Home
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The decision on whether to purchase your own house or rent an apartment is extremely difficult. There are number factors which need to be taken into account by an individual before they decide to purchase or rent a house. If you decide to purchase a house, you need to understand that it is a long term investment. The factors that any individual must take into account before they make a decision are:
The first thing that one needs to calculate is the cost. In current times even renting a house is an expensive business. It is extremely important for an individual to decide whether or not purchasing a house will be more or less expensive as compared to renting one. If you do not have the savings, then renting would be a better option. However, if you do have a reasonable amount of savings, the best thing one can do is opt for a home loan to afford the house of their choice.
Another key factor one needs to keep in mind is the duration of the stay. If you plan to live in a city only for a couple of months or years, then renting out a house would be a more cost effective option. However, if you plan to settle in a city, then purchasing your own home would be a cheaper option. Even if you do not have the require finances to purchase a house, there are a number of banks and financial institutions with which one can apply for a home loan to purchase the house of their choice.
If you are one who suffers from a relatively lower credit score, getting a home loan application approved from the bank may prove to be difficult. In such a case one can opt for renting an apartment for a fixed period of time during which they can take steps to improve their credit score.
Type of occupation
The final thing that one must keep in mind when considering whether to purchase a home or rent one is the kind of job one has. If your line of occupation requires you to travel in a regular basis to different cities and countries, then purchasing your own house may be extremely expensive. Also, since you are hardly going to live in your new house the entire process would not only be a waste of time but also extremely expensive for an individual. If however you have a steady job in a city, then purchasing a house is the ideal choice.
There are a number of factors which must be taken into account by an individual before making such a decision. One must also sit down and do the math before they consider applying for a home loan to ensure they are making the right and cost effective choice.
Author Bio :
Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the home loan.
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