Should You Buy Or Rent When Moving Abroad?
One of the main concerns of people seeking greener pastures elsewhere besides the country and city to live in is the apartment they will stay in. All the excitement and joy of moving abroad could be quenched if you cannot find a place to put up while you work or school there. One question people ask themselves before relocating to their new country of residence is, “should I rent a house or buy one?” Which is a better option?
Before concluding on which option is better, there are some questions that you need to answer. How long do you plan on staying abroad? What is your reason for moving? What’s your budget for this move? Would you be moving alone or with your family? What kind of property would you want to live in? It’s better to weigh the pros and cons of buying a home or renting one.
Pros of buying
- the property becomes yours after paying off your mortgage, and you don’t have to worry about paying rent as long as you live in the city.
- your home is likely to appreciate, and when this happens, the equity could be used to fund your retirement or used to buy a bigger house.
- it is sometimes cheaper to buy than to rent.
- it gives you stability. There’s no risk a landlord would displace you.
- money spent improving your home is not wasted as this would increase its value.
- mortgaging is a form of enforced savings. It disciplines you into saving rather than spending on frivolities.
Cons of buying
- increase in interest rate might cause an increase in your repayment. Are you financially prepared for it?
- if you stretch your budget to acquire property abroad, it may affect your cost of living.
- if the value of your home depreciates, it becomes hard to sell if you owe your mortgage lender more money than the worth of your house.
- it’s not just enough to decide to buy a home. You need to know if you can afford to buy one. Before buying a house, consider the things you have to pay for such as removal cost, stamp duty, survey cost, monthly utility bills and so on.
- your house could, possibly, be repossessed if you fail in keeping up with your mortgage payment.
- cost of maintenance and payment is transferred to you. Aside from this, you may need to pay maintenance fees if your house is part of a body of corporate arrangement leading to possible unaffordable financial burdens.
Pros Of Renting
- it is way easier than buying—no much legal hassle.
- gives you the flexibility to downsize or upsize when necessary. You can quickly move out when you are no longer interested in staying in the property.
- it reduces the financial stress associated with a mortgage. This frees up cash for you to invest in the future.
Cons Of Renting
- no investment potential. Instead, you are contributing to someone else’s investment or mortgage repayments.
- lack of stability. You might be forced to look for another apartment if your landlord decides to sell or rent out to someone else instead.
Whether to buy or rent the property you’ll be living in when you move abroad is not a decision to be taken lightly. You have to weigh the pros and cons carefully and know if you are truly ready for the outcome of your choice. Depending on your condition moving abroad and your financial capacity, any of the options can be great. Whatever you decide, ensure it’s the best for you and your family.