Should I buy a property or should I rent a property?

By: Anelize Hendrikz | Posted: 21st August 2006

Should I buy a property or should I rent a property?

I am sure that this is a question that many of us have asked on numerous occassions and the answer is not always clear. But what is clear is that there are a few factors that will always influence our decision, "the living up with the friends and family", that "nice to have feeling" and lastly the "I must have it".

Let's take a closer look at the two issues;

Rent a property – this is easy as there are no risks involved. All I have to do is to find the right property to rent. You might consider this time consuming but what is time compare to risk?

To buy a property – now this is where it becomes tricky. When buying a property it affects every aspect of your financial situation and also financial planning. Why? Buying a property involves a risk factor and the changing of your investment profile.

Here are five vital questions that you can answer before you take a decision on whether you should buy or rent;
• Have you planned your finances?
• Have you spoken to an advisor such as a certified financial planner?
• Have you reassessed your asset allocation?
• Are you prepared to make changes to your short- and long- term insurance cover?
• Is this my decision and my decision only?

Remember, financial planning is nothing to be afraid as buying property involves us in the biggest financial commitment of our lives.

The editor
Pat Jewell
www.cyberprop.com

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Tags: time consuming, closer look, financial situation, friends and family, insurance, risk factor, financial planning, buying a property, financial commitment, asset allocation, certified financial planner, vital questions, long term insurance, occassions