For some people, having to pay for rental can quickly eat into their disposable income and thus leave them with less for long-term financial goals. But for others, this price could be well worth it, in exchange for more freedom, privacy and healthier ties with family members.
And for those unwilling to compromise on space and location, paying rent can be worth the potential transport savings, convenience and time gained in return.
Of course, if your finances allow for it, then buying instead of renting will usually be a much better choice. That’s because every dollar you pay is going towards accumulating an asset, rather than lining someone else’s pocket in the form of rental income.
What’s more, as an asset owner, you have the bargaining power to either rent out your property for extra income, or sell it to unlock capital in the future. During periods of persistent inflation, having an asset to your name – especially one that either keeps up with, or rises faster than consumer inflation rates – will be more beneficial in the long run.
Renting puts you at the mercy of your landlord. But if you’re the owner instead, you get to do whatever you want with your asset.
Dawn Cher, otherwise known as SG Budget Babe, runs a popular blog on personal finance and has a licence in real estate.
For all the latest business News Click Here
