When it comes to taking one of the most important steps in your life and choosing a home, one of the deciding factors is whether you should buy or rent.
In Portugal, this question has for some years resulted in an analysis that always pointed towards buying a property rather than renting. This scenario, however, has changed significantly with the economic crisis and the fact that renting has become a national preference.
Nowadays, supported by a better financial situation, the problem has returned to gain relevance and many people find it difficult to decide whether they should buy or rent a home.
If this is your case, be sure to know the pros and cons of buying and renting first.
The Advantages and Disadvantages of Buying a Home
When it comes to buying a house, you will find several advantages. Firstly, you will be investing in an asset, which will go up in value and give you the freedom to do whatever you want to it. This means you can do any improvements or decorations you want to the property without being answerable to anyone. You can even make holes in the wall. In addition, buying a home can give you more money in case you sell it later as long as you sell it at the right time.
On the other hand, buying will also have undeniable disadvantages. The first will have to do with taxes and charges. An owner will be responsible for payment of taxes as the IMI. In addition, the advantages of location can easily change if the area goes through changes. This can happen if a road is constructed in your area or the local council builds homes in an estate nearby.
Finally, in a dynamic world like the current one we live in, the restrictions brought about by purchasing is another of its disadvantages. Having a "fixed location," can result in unpleasant changes that may arise suddenly.
The Advantages and Disadvantages of Renting a Home
Renting also has its own advantages and disadvantages. Among the advantages are the possibility of people on lower incomes to rent as well as being able to move whenever they want. Tenants will not be responsible for any repairs that the property needs as they will only need to pay the rent and the bills.
The disadvantages of renting are basically less freedom, since you are answerable to the landlord; and a continuously paying for a property that's not your own.