Buying a home is one of the dreams that the community wants to realize. Home ownership is considered as one of the best investments and an important milestone towards a better life. Which is more appropriate for us, is it owning a house or is it better to rent / contract first?

Buying a house is often done by many people with two methods, namely in direct cash or through installments. If you have enough capital, then many people suggest to buy directly in cash. What if our capital is mediocre? Some recommend buying credit / installments instead of rent / contract.

Buying a home is still an important financial goal, and this can be a great way to build wealth over time. But this does not mean that it is always the best investment choice. You need to consider the goals for your long-term and current financial situation.

Taking into account the following things will help you decide whether this is the right time to buy a house or better to rent / contract it first.

Are You Ready to Settle?

Many people decide to buy a house because they are tired of "throwing money" just to pay rent. However, when viewed from another perspective, renting / contracting provides flexibility and freedom compared to you must be 'imprisoned' if you buy a house in installments for a period of 10-15 years.

On the one hand, the rental price / contract costs may increase, but on the other hand for those who choose to own a house, there is a possibility of a property tax increase and home maintenance costs.

Then, what is the best decision? It depends on you. If you don't plan to stay in the same home and neighborhood / area for at least three years or more, it is usually more reasonable to rent.

It takes a long time for the value of a home property to be able to cover transaction costs associated with buying and selling home property.

Are You Skilled in Caring for Home?

If you have a home, you have the freedom to conceptualize it yourself. You can install hardwood floors and build a deck in the backyard. It is true, we can hire someone to do many things to remodel your home, but that requires quite a lot of money.

Depending on the age and condition of your home, handling care and repairs can be time consuming, stressful and expensive.

Meanwhile, if we rent a house, it can be handled by the homeowner.

Consider Property Taxes and Other Fees

It is true that owning a house can give you additional tax deductions that are not available to tenants, but not always.

You usually have the option to reduce mortgage interest along with property taxes that must be paid, but you must specify this deduction to get the tax benefits.

Also, keep in mind that certain costs associated with home ownership cannot be deducted such as repair costs, homeowner insurance and homeowner association fees.