Is Mortgage Better than Rental?

Many people love the idea of owning their own home but others prefer to rent. It is worth considering which might suit you best in your own personal situation. Understanding a bit more about the pros and cons of each might help you to make up your mind.

Advantages of owning a property

If you own your property then you will have a place that you can do what you wish with. It means that you will be free to make changes to it, not just to how it is decorated but extend it, change the layout and things like this. This freedom can mean that you will be able to be a lot more creative. You also have the advantage of not paying rent. Although you will have to pay for a mortgage and insurance, you will not have to always pay mortgage payments. After up to thirty years you will have finished paying for your apartment or house and you will no longer have to worry about rent. This can be particularly advantageous as you go into retirement and have a lower income. You also have the security of knowing that you can never be evicted unless you do not keep up with mortgage payments.

Disadvantages of owning a property

If you own a property you are responsible for keeping it in good repair. If there is damage to the property or it needs modernising, then it will be your responsibility to organise for it to be repaired and paid for. This can be costly and if you delay getting work done, there could be more damage and it could be more expensive in the future. You can have insurance which will cover some of these costs, but it may not cover all costs.

If you tend to move between areas regularly then you could find that owning a property can be a problem. Rather than just handing in your notice and then finding a new place to rent, you will have to wait for your home to sell and then look for another one to buy and pay for all of the various things that go alongside buying a new home. This can make things pretty complicated.

Advantages of renting a property

If you rent a property you will not have to stay there that long if you do not like it. You will be able to hand in your notice and move out, sometimes within a few months. If you want to move to a different area or a new home, you will need to do the same. This means that if your income changes and you need to downsize or can afford something dearer, you need to relocate for work or something like this, then it will be fairly quick and convenient to be able to do this.

It might be cheaper to rent rather than own your own property as any work that needs doing will need to be organised by your landlord. It could mean that it will take longer to get fixed but at least you will not have to pay for it.

Although you will need a deposit before moving in it will be significantly less than the deposit required for getting a mortgage. This means that if you are not good at saving or find that you cannot save much, then this will mean that you still have an option.

Disadvantages of renting a property

When you rent a property there is a chance that your landlord could give you sudden notice to move out. This could happen if you struggle with the rent or if they want to sell the property. This can be extremely stressful and disruptive and if it happens to you a lot then you could feel unsettled. If you have children then they may need to change school if you are forced to move to an area which is too far away from the school that they are currently at.

There is also the risk that the rent may be put up at any time. This could mean that you will end up paying significantly more rent and find that it is too expensive for you to be able to manage.

So, as you can see there are advantages and disadvantages of both renting and owning a property. This means that you will need to think about what is important to you and therefore this should help you to think about whether you feel that renting or owning is best for you. If you are happy to settle down then owning a property could be better for you as long as you can put together the significant deposit required and are happy to cover the costs of any repairs required. It could work out very much cheaper in the long run compared with renting as once the mortgage is paid off you will have significantly less to pay for.

Top Tips to Pay off your Credit Card

Having credit card debt is something that many of us are familiar with. Many people have credit cards and although some will repay the full balance each month and never pay the interest charges, there are many people that will leave an outstanding balance and will be paying interest. This can build up and you might find that you owe so much money that you will not be sure how you will cope with repaying it. This is something which can cause a lot of stress and it is therefore wise to make sure that you stay in control. Below are some tips on how you can start to repay your credit card and help reduce this stress that you might have.

Stop using the card

It is wise to start by reducing the amount that you use your credit card. It can be best to stop using it altogether unless you are making purchases that have to be paid with on a card. It is often wise to use your credit card when buying things online, because it is more secure. However, you may find that you will be able to use other secure ways to pay online, such as Paypal which could enable you to have the security without having to use the credit card. You may want to hide the card or cut it up to remove the temptation of using it or at least remove it from your change purse or wallet so that you do not use it by mistake.

Pay off more than the minimum

When you get your statement you will be required to repay a minimum amount. This is likely to just cover the interest and a small amount more. This means that if you are relying on paying it off by just making those minimum payments then it can take a long time. The specific time will depend on how much you owe and how much you are paying but it is wise to repay more. This could mean that it will be wise to set up a direct debit that repays a bit more than the minimum. It could just be a few dollars more if that is all you can afford, but it will all help. You might also be able to repay chunks of money from it as well. If you have money left at the end of the month then you could pay that towards the credit card.

Reduce spending elsewhere

If you can cut down your spending in other areas then this might help you to be able to more easily afford to repay higher amounts from the card. This can be tricky, but start by making sure that you are not paying more than necessary for anything. Then you can compare prices on everything you are buying and decide whether you feel that you should be paying less or whether you are getting good value for money. As well as paying less for what you do buy, it can be wise to reduce the number of things that you are buying. We all buy too much and by cutting down, even by a small amount, it will give you extra money that you can use to repay the debt. Payday loans online can also help get you out of a jam in the short term.

Sell items to raise funds

If you have a lot of things that you own but no longer use or need then selling them could help you to raise some money that you will be able to use to help pay off your debt. This is easy to do, you just have to choose the right place to sell the items. There are lots of options such as a garage or yard sale for items of lower value to online auctions for more collectable and valuable things. It is worth thinking about what different options you have for selling things and which might raise the most money for you. If you sell online, then you will have to consider how you will get items to customers too and allow for the cost of this.

Earn more money

It might be possible for you to be able to earn more money to help you to repay the card. If you work already then it may be possible for you to do some extra work and get some overtime pay that you could use towards paying it off. However, if you do not work or cannot do this then you may need to look for other options. It might be that you can find some freelance work or temporary work You may be able to find some online work. There are lots of opportunities you just need to identify how much time you have, what you can do, what is available and then try to fit in. With online work you do need to be very careful to make sure that you are working for a genuine person or company and that you will get paid for what you do. Check out reviews first and never pay anything out for the privilege of finding a job.