Should You Buy a House or Rent this 2022?

An average person would dream of one day having their own home under their name. When I started to join the corporate ladder a decade ago, I was asked by my colleague to invest in real estate. As a teenager, such an idea wasn't a priority, yet the goal back then was to get the salary and buy the things I wanted, a typical happy-go-lucky story that people can relate to and regret in the future. Back then, if I had grabbed the idea, I probably would have owned a home already, and we are not renting anymore.

But let bygones be bygones since it is already 2022. Do you think buying a home rather than renting is still intelligent?

One of the best reasons to rent a house is that you can afford to live anywhere. You have the freedom to move anywhere and not worry about selling your home.

If you're looking for a job, this is especially important. Higher-paid opportunities are offered in the city, and most jobs require someone to be in the office daily. But thanks to the internet, most people get jobs even though they are in the countryside. Renting a house is also great for those who are just starting. You can save up for your first home by renting instead of buying one. It will take some time, but with patience and discipline, it will be possible to buy a home of your own after a few years or even months, depending on how much you earn.

In one of the conversations we had as a husband and wife, we talked about saving for the next five years to buy a lot nearby and then build our home there. Given the monthly income, renting will be a good alternative for a start-up family. You'll be able to keep a smaller savings account in reserve.

It will ensure that you have enough money for emergencies and other situations that may arise. You can also use the savings account to save up for your first home or just anything else you need. If you're planning to buy a home, it's not just about saving up the money needed for a down payment. You also have to consider how much you can afford monthly and what kind of mortgage you'll get. Since I worked as a mortgage collection officer, II understand the importance of paying the amortization on time. I wouldn't want my payments to default and then be in foreclosure because of unpaid debts.

When you are renting, you are also not paying for real-estate taxes. That is one thing you have to take into consideration when you're buying a house. You are not just paying for the down payment but also the monthly amortization and other fees that come with owning a property. Though some mortgage companies offer escrow to cover everything in the future, with the increasing price of everything, an extra variable that can change your finances will surely hit the budget.

Renting a house isn't going away, but neither is homeownership. No matter which path you choose, there are pros and cons involved with each type of housing situation. If you're starting in life, renting a place might be best and saving up for a down payment on a home. If you have the means to buy a house right away, then, by all means, do so! It can be an exciting adventure—especially if you are building equity in your home.

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