Should I buy or rent?
With the idea that home ownership could be an unattainable dream, some of us have given up saving for something that may never happen.
There’s no denying that the cost of living in Cayman is notably high; food, entertainment and travel can eat into the savings budget quite easily here. But that doesn’t mean you should settle for paying someone else’s mortgage.
At Property Cayman, we want informed, financially secure and happy buyers, for the long term not just a quick sale. Let’s look at the advantages of buying or renting and see where you end up:
- You can do anything you want with the property – Paint the walls, change the floors, make the house your home.
- When you pay off your home, it’s yours – You eliminate the expense of housing once you’ve paid it off and you have a tangible, hopefully profitable, asset in your name.
- You could create “sweat equity” – Buy a fixer upper, make financially smart improvements and increase the profitability of your investment.
- It can be an investment property “cash cow” – The current boom in the renal market in Cayman means that you could potentially cover your mortgage, property fees and insurance and then some, whilst renting out your home to Cayman’s growing number of affluent professionals.
- Leverage one property to buy another – Create a property portfolio by leveraging the value you have in your first property to purchase a second, and have the tenant pay off your mortgage.
- No repairs and maintenance costs – You’re only a phone call away to having your property fixed, at no additional cost to you (assuming you haven’t initiated the damage!)
- Live in a more desirable home – If you do not have a goal to save towards a home in Cayman, you can potentially afford to rent in a more desirable area, that you might not otherwise be able to afford, like Seven Mile Beach.
- Try before you buy – It’s always a smart idea to try living in a certain area or style of home before making the big decision to buy.
- Less stress – It’s not always possible to pool enough cash to pay for a property deposit (often up to 20% of the bank approved valuation). By renting, there’s no stress over a hefty financial investment.
- Adaptable living – Don’t experience the stress of outgrowing your home; as a renter you can easily change your rental as your family expands.
The Bottom Line
The rent vs. buy debate ignores a vast grey area that exists between the two options. There are many variables to be considered and they will be completely different for each person.
What can you realistically afford? Do you have any savings or can you set up and achievable plan to start saving appropriately? Do you have assistance from family or support if something were to go wrong? Are you confident in where you will be in 5-10 years time and what you will be able to manage?
Sometimes it’s smarter to rent, and sometimes buying can work in your favour. Rather than giving in to one side or another, it’s more helpful to consider all options, crunch the numbers, then do what works and feels right for you.
Let Us Help For Free
The good news is you don’t have to do this alone. We are here to talk through your current needs and future plans to determine what’s important to you an highlight matters you might have not considered.
What’s even better, there’s absolutely ZERO cost to you, ever! A good realtor can help you find properties that are off market, help negotiate tricky deals and guide you to make the right decision for your unique property journey, regardless of what that looks like.
To find out more or to get started, contacted us today!