Buy or rent?

A guide to the pros and cons

Buy or rent?

A guide to the pros and cons

Looking for a new home? Exciting! But what's the best option for you – buying or renting? Here's a comparison.

Why rent?

Advantages of renting

Renting might be the obvious solution in your situation. Especially if you don't have a lot of savings to fall back on. If you rent a home, you just pay the monthly rent and charges. The landlord has to pay for any major maintenance. That gives you more scope to save for later. Or to spend your money on something else.

Tenants don't have to worry about costly insurance. Those costs are low: you only have to budget for your fire insurance and family insurance. What about insuring the property itself? The landlord takes care of that. Renting gives you a great deal of freedom. You can move without too much hassle if a new opportunity arises.

Disadvantages of renting

Some people would rather not rent. They think it's 'pouring money down the drain' to pay for a home that doesn't belong to them. It's almost impossible to make major alterations to a rented home. You have to rely on the landlord. Remember that you have to return the home to them in its original condition at the end of the lease. Awkward if you have to drill into the wall to put up decorations, for instance.

The freedom of renting works the other way too: if the landlord suddenly decides to sell your rented home, you have to look for a new place. Do those disadvantages matter to you? If so, buying might be a better option.

Why buy?

Advantages of buying

It's always a good idea to compare both options. In some cases, there are simply more advantages to buying. For extra financial security you can always take out a home loan. Tip: Calculate how much you'd have to pay each month in advance. By doing so you make a calculated investment.

With a mortgage loan, you get a tax break on capital repayments, interest and premiums you pay for life insurance. The precise amounts vary from region to region. You can also get a bonus if you invest in energy-saving improvements to your home. Ask your bank about this. For instance, you get tax relief on withholding tax for sustainable new-builds.

When you've bought your home, you can alter it or do it up whenever you like. After all, your home is your castle. Who knows, it might even increase the value of your home. Handy if you ever decide to sell it.

Disadvantages of buying

You need to take the monthly repayments into account: these tend to be higher than the average rent. There will be extra expenses at the start, such as housing taxes and legal fees. Also, you need to remember that insurance will cost more than for a rented home. Especially if you take out optional insurance with your mortgage loan.

Planning on renting? Our renting checklist is your handy tool!

When renting a home and moving, there's so much to take into consideration. With KBC's renting checklist, you'll have a list of all tasks, and you'll be able to add them to your own to-do list and diary.

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