It is no secret that the economic crisis is affecting everyone across the world and in Egypt that started affecting the way people go on in their lives. For instance, in the past, it was the norm to purchase a house when starting a family. But nowadays more people are turning to renting as they believe it costs less.
In the short term, sure renting may cost you less, but in the long run, owning a house is the better choice. In this blog, we will give you all the facts you need to know before deciding what’s your best choice.
Renting Vs Buying A House
There are many aspects you need to consider before making the decision of purchasing or renting a property and to be 100% impartial we have to say that every decision has its pros and cons. So let’s take a closer look at the 3 main factors that can affect your decision.
1. Cost of Renting Vs Buying
Of course, the cost and budget is the first factor that affects this type of decision. The cost of any real estate property depends on its location, type, size, layout, and finishing. But to put it into perspective, we will assume we are talking about the exact same property.
If you are renting then you will have to pay:
- Monthly fees (rent)
- Monthly maintenance fees
- One-time broker fees
- One-time security deposit (that you may not get back if there’s any damage to the property)
This means that renting has relatively low initial costs but high recurring costs. On the other hand, if you purchase a property you have to pay:
- A down payment (usually 5-30% of the total cost)
- Installments for a specific period of time (usually from 3-10 years)
- Maintenance fees (Could be annually or monthly depending on where you live)
Accordingly, buying has higher initial costs than renting but lower recruiting costs. And don’t forget in both scenarios you will be paying monthly fees for a while but one day that ends if you are buying and you will end up fully owning your house.
2. Investement Oppurtunity
Let’s say you have been renting a house for 10 years, what will you end up with when you move somewhere else? Maybe some fond memories but surely there will be no monetary value to gain.
However, if you purchase a property and pay installments for 10 years then decide to sell it and upgrade you will not get the total amount you paid back but there’s a huge possibility that you will profit. How? Simply because the Egyptian real estate market is constantly on the rise.
In other words, purchasing presents a safe and lucrative investment opportunity. You will get to live in a house for years and hold your money’s value. If you play your cards right our home can be your biggest financial asset!
Learn more about Real Estate Investment Vs Inflation
3. Personalization and Customization
Home is where you spend most of your life, so there is a huge emotional aspect that plays a role in these decisions. Of course, anywhere you are with your loved ones will be a warm home. But a place that you decorate yourself and has every piece reflecting your personality will definitely feel more like home than a rented place.
Many people overlook the importance of personalizing a house to their preferences but that’s where the real difference between a house and a home lies!
Bottom Line
Before making a decision ask yourself, are you going to relocate any time soon? Do you have savings that you can put in a house? Are you ready to decide on what exact type of property you want now or do you need more time?
All in all, no one can tell you what the best choice for your family is. You should prioritize your needs, set a budget, and then make your decision.
If you need a helping hand, you can always tap on the WhatsApp icon and talk with a Nawy professional property consultant!
