To Rent Or Buy There's More To It Than Money - Part 1

GPF Mortgage – Home Loans

To Rent or Buy? There's More to It than Money

Part 1

GPF Mortgage – Home LoansSoon after you have carefully researched the financial issues of the rent-versus-buy decision, let's take a look at the issue from a different point of view, one including emotional factors and personal preferences that jointly determine the effect of your decision on your quality of life.

These "non-financial" concerns are based upon your personality, abilities and values. They require mindful consideration, starting with this question: what features about the place you live in are essential to you?


Environment: City vs. Suburbs.

GPF Mortgage – Home LoansThe environment you choose to reside in plays a significant role in your quality of life.

Consider your personality. Do you enjoy the character of the city, with its nightlife, inquisitive cafés and diverse cultures, or do you prefer the safety, conformity, green space and free parking in outlying suburbs?

Do you favor to drive, walk to work, or take the train?

GPF Mortgage – Home LoansHow valuable is privacy, and how far do you like to live from your neighbours?

If you can afford only those homes in environments that do not fit your preferences, you need to think about whether you are willing to sacrifice these preferences for the sake of purchasing a place.


Facilities vs. Customization.

GPF Mortgage – Home LoansRand for Rand, renting generally offers a substantially greater number and variety of amenities than buying.

Consider, for example, the amount of security complexes that include a swimming pool, tennis courts and on-site gym.

If you're looking to have these features in your private residence, get ready to invest a lot of money.

GPF Mortgage – Home LoansHigh end flats and complexes, found in nearly every city, provide such options at a relatively lower monthly rent than a mortgage for a property with the same attributes.

On the other side of the coin, there are budget-friendly homes with private outdoor spaces that you can customize to your liking.

There may not be many apartment buildings that come with acres of property in the country that will let you do your own landscaping or grow a garden.


Flexibility vs. Stability.

GPF Mortgage – Home LoansRenting a place to live gives you significantly more freedom to get up and go at a moment's notice. The financial effects of violating your lease agreement is marginal and can be addressed by simply paying up the time remaining.

Homeowners wishing to leave their current residence face a more complicated procedure of selling their property.

The home loan still needs to be settled and the grass still needs to get cut while you are waiting to find a buyer.

GPF Mortgage – Home LoansUnless money is no object, the transition to a new address is likely to take months, not days.

However, with the versatility of leasing also comes some instability. The landlord can always increase the rental fee or ask you to move before you are ready to do so.

If you own a house and make the payments, you can live as long as you desire.


We have come to end of part 1! But don’t be disappointed Part 2 is on the way.

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Economy & Finance

To Rent Or Buy There's More To It Than Money - Part 1