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.

Article by: Pat Jewell - www.cyberprop.com