It is Better to Own or Rent a Home?

Most of us are lucky enough to live in a home but some of us will own that home and some of us will rent. In the past governments have encouraged us to own our own homes and that has lead to a culture where most people desire to own the home that they live in. This does have advantages, but there are also disadvantages as well. It is worth understanding both before you make a decision to buy a home or to sell your home and return to renting.

Advantages of owning a home

Owning a home means that you have somewhere secure to live that you will not have to move away from unless you are unable to pay the mortgage. When you rent you tend not to have this sort of security as even if you are able to pay your rent, you will still be at risk of being given your notice if your landlord decides to sell the property. There is also a risk that your rent to be put up to a level that is no longer affordable for you, so you are forced to leave.

Owning your home also allows you more freedom with want you can do with it. You can decorate it how you wish, which may not be allowed when renting and you can do restoration and repairs. You can change fixtures and fittings and make the home your own. If you want a bigger home you can expand it rather than having to move.

When you buy a home you tie up money in it which can be released when it is sold. When you rent a home the money you pay all goes to the land lord and you cannot get anything back. You home should increase in value over the years you live in it and if you own it, that value increase will go to you, once the home is sold. Although, while you want to own your own home, you will not be able to access the money tied up in it, you do always have the option of selling it to release the money. Many people choose not to do this but let their children get the money when they inherit.

Advantages of renting a home

If you rent a home you will have more flexibility to move. If you tend to move around the country for work or do not like to tie yourself down to living in one place then renting is better as you will not have to sell a home frequently. You may also not know an area well and if this is the case it is wise to rent for a while before thinking about buying so you know more about the local area first.

If anything goes wring with the house or fixtures and fittings then the landlord has to fix them. This is everything form a roof repair to a boiler service. This means that the tenant will save money by not having to pay for these things themselves. They will not even have to pay for decorating, although some choose to because they want to brighten up their home.

When you buy a home you will normally have to take out a mortgage. This is a loan with a big commitment. You will normally have to repay it over twenty-five to thirty years, which is a long time.  It is really important to make sure that you are able to repay the loan over the whole period or else you risk losing your home. This would be recorded on your credit record and so it could be hard for you even to find a property to let as landlords like to do a credit check first.

As you can see, there are advantages and disadvantages. It is worth thinking about whether these will apply to you or not. It might be that you want to settle somewhere and that you are confident that you will be able to repay a mortgage or it might be that you think you will be moving around a lot and are not sure whether you would have a secure income to pay a mortgage. There are also very personal reasons for wanting to own or rent a home, perhaps due to family traditions or things like this that you would need to consider.

Once you commit to buying it is difficult to back out as you will need to sell your home. This is not always easy as it depends on the housing market. The house may also lose some value initially and so you may not get back what you paid for it. Moving is also expensive and you will need to pay solicitor and removal fees and these will be costs that you will want to get back as well.

Is it Worth Having Two Family Cars?

There are many families that have more than one car. It means that it is easier to get family members around and if you are not near to services such as shops and schools then it could feel necessary. However, running on car is really expensive and so having two is even more so. This means that you need to think carefully about whether you should have more than one car or whether you will be better off saving the money.

Costs of a car

You should be aware of how much a car costs, but as there are so many different expenses it is sometimes hard to actually work it out. It is worth adding up all of the costs so that you know exactly how much it is and this could help you in your decision making as to whether it is a good idea to have one. There is the cost of the car including the cost of any loans you may have taken out to buy it. The tax, insurance, MOT and servicing as well as any repairs, new tyres, bulbs, wiper blades and things like that also need to be accounted for. Then there is the cost of fuel, which can be very expensive and if you have a large car then it will take more fuel to drive. If you actually calculate the costs of all of these things you might be in for a shock as to how much the car actually costs to run.

Advantages of a car

Of course, having a car has a lot of benefits. It means that you can more easily get to work, get the children to school and go shopping and run other errands. Some people have no choice if they live far away from services and there is no public transport or it does not run at the right time. However, many people do live near to services and they still choose to drive and it is these that need to consider whether the advantages of having a car outweighs the costs.

It can be a lot more convenient. It can mean that you do not have to coordinate with each other to make sure that you can use the car when you need it. It means that you can drive to different places at the same time, which can be very useful if one person needs to go to work and the other do the school run.

Weighing things up

It can be a good idea to note down all of the car journeys that you take and consider whether there was an alternative. You may have been able to walk or cycle perhaps or take a bus or train. It might be that if you have one car then you might be able to travel in that rather than split between two cars.

Once you get used to having a car it can be difficult to do without it. However, if you are used to having none or just one in a family, it is a lot easier to continue with that rather than buying a second car. Once you buy one, you may become reliant on it and that could mean that you will then be stuck with the expense of having two cars for a very long time.

It is important to think about the cost of the car and whether you think that it is worth it. Consider whether you in fact have enough money to actually afford it. If you do have the money then you need to consider whether you think that using it on a car is a good use of that money or whether you feel that it would be better spent elsewhere. Consider what other things you could spend that money on and that will help you to know whether you think it is worth it. Some people will not be without their car, they feel it gives them a freedom that they cannot get elsewhere. Of course, the car may also be necessary for work as if the two drivers work in completely different places and cannot get to work without a car then they will need it if they want the job. By doing away with a car they will also have to leave their job.

It is worth thinking about why you want your car and whether it is just a possession that you are close to rather than something that is necessary for you to have. Possessions are hard to part with but you need to consider whether it is worth keeping considering how much it is costing you. Consider whether you are getting good value for money or whether you are just paying more for something than you really should be.