To buy or to rent a home?

 

Nowadays most of people specially in Kabul ask everyone before moving into their first home: Should I buy or should I rent a home? It depends on the individual person. When we decide we need to think every single aspect of the matter.

In recent years the answer has been buy.

The crash in home prices, combined with record-low mortgage rates made buying and owning a home both cheaper than renting one and a better investment.

But sometimes it changes.

Fast-rising home prices and higher mortgage rates have shifted the calculation to rent. The monthly costs of buying and owning a home that you occupy are up 14 percent over the past year, more than three times the annual increase in rent rates nationally.

Emergency savings and satisfaction.

You should have an emergency fund either to buy, rent a house or apartment.

When you’re young, buying a house can tie you down to a location before you’re ready or when you are not a big family or you are a single person its better to rent a home rather than to buy. If you get the perfect job offer in a different state, you can just break your lease early or sublet your apartment if you’re renting. It’s much harder to sell a home, find a new place to live and start a new job within a short time frame. And when you are in a business and you cannot invest in somewhere that you are not sure of the security of the place or when you have a long travel it’s better to rent a house. Afghanistan is a country that you need more research while making a big decision However, people faced a lot of challenges while buying and renting a house.

 Therefore, For both of choices the important point is your satisfaction. If you are satisfied with the apartment or a house even villas for instance, you get sure that the location is safe and secure, the apartment or the house has cabin and garage, balcony, a fireplace, a ground floor, parking place and if its an apartment should have loft, then you can come with a good decision.

Buying a home could bring huge benefits.

Consider that someday, your house might be worth more than you paid for it, and you'll move on as a profit. You might also have a potential for future passive income, if that's the route you want to take. And paying off your home to live mortgage-free can set you up for a comfortable retirement.

 

On other hand think about your 5-year plan or, you know, think about making one.

Let’s assume all your numbers add up, and you’re in great financial shape to buy a place. Hey, congrats! So now it’s time to ask yourself: “Where do I want to be in five years?” If the answer has a definitive geographic location tied to it, then buying a home is a strong option. But if you aren’t quite sure where you’ll be living beyond the next few years, you might want to consider renting until you sort that out

You should only buy a home if you plan to be in it for at least five years. That will give you enough time to recoup the costs of buying and selling, such as legal and bank fees, commissions, and inspections through appreciation. You have to be disciplined enough to actually invest the extra money and not spend it on.

Finally, you should study up on your region’s real estate trends and predictions. If you live in a location where home prices are rising faster than inflation, you could come out ahead if you choose to buy. Conversely, you would be better off renting if there is very little appreciation.