Did you know that rental prices have decreased in the Nairobi Suburbs? It is everyone’s dream to own a home, and while that may be the case there some key factors to consider while trying to decide whether buying or renting is the best option for you. There is no better option than the other, it all depends on individual circumstances and needs, financial readiness, lifestyle and future plans, Local house market condition and emotional readiness.
Let us look into some of the pros and cons of renting and buying a home.
Renting:
Advantages.
Flexibility and freedom: Renting gives you the freedom to move around with ease. In the case of a job transfer or even dissatisfaction, one can easily get into another rental.
Predictable expenses: In a rental you can budget your expenses as they are almost always predictable. A hitch in the house is catered for by the landlord hence you bear no extra costs. There is little to no maintenance cost.
It can be cheaper: There are less upfront cost when renting a house, no down payment and taxes incurred.
Disadvantages
Limited personal style: You are not able to paint, renovate or update anything due to the rental agreement. If you don’t like the kitchen counter tops then there is nothing you can do.
Less stability and equity; When you rent, the money you pay goes to the owner and does not contribute to building your own wealth. This can be a disadvantage for long-term financial stability and asset ownership as you are not inverting that money in any way.
Rent fluctuations; You have no control over rent increases and in high-demand areas, they can be substantial. If the homeowner’s fees increase, for example, tax and insurance obligations, landlords can pass these increases onto the renter causing financial unpredictability.
Find some of the property options that we have below for renting.
Buying:
Advantages.
Good long-term investment: There are higher chances of increase in value for a house which in turn means a good amount of profit when sold.
Stability: Remaining in a neighborhood for a long period of time gives you a chance to get involved in the community, build solid friendships, and ensures continuity.
Freedom: The home is yours to decorate, change or fix something to your preference, needs and taste.
Predictability: Unlike renting, fixed mortgage prices do not rise over the years.
Disadvantages
Expenses of maintaining a house up to market standards are high. Homeowners pay property taxes, property insurance, utility bills, and maintenance bills which sometimes come as a surprise as result of floods, pipe bursts and fires.
You are responsible for everything: Owning a home means that any damage or issue that occurs it is your duty to make sure everything is in order.
At the end of the day, there’s not a right or wrong answer for renting vs owning a home. For some it could just be a lifestyle choice, maybe they don’t want to have their hands tied in a 20+ year mortgage or have to deal with the responsibilities that come with being a homeowner. There is always an upside and a downside! What is your choice?
Find some of the property options that we have below for buying.