by Gemma Maggay

Created on: September 07, 2007   Last Updated: September 05, 2010

The decision to rent or buy a home would all boil down to your financial capacity. Some would say if there's a will there's a way. Yes, it is a common knowledge. But always bear in mind that fixed expenses eats up our income and unexpected expenses, may or may not have been included in the fixed budget.

If the family rely on a very unstable income, it would not be advisable to buy a house, rather renting would be fine. Any extra income earned can always be saved in the future for plans of buying a house. At least renting a house for a maximum of three to five years would be good enough to say the trending of the family's source of income is very stable.

A stable job is a good preparation financially, an important record to convince the seller and the bank a sure money to pay. The necessary income taxes have to be filed as well as bank statements which serves as proofs of income.
Usually buying a house would entail a huge cash outlay amounting or equivalent to thirty percent of the total cost price of the house, least likely ten percent of the total cost price of the house. The remaining balance generally would be granted in the form of a housing loan.

Yes, it is a very nice idea if you can buy your dream house. Owning a dream house might be very expensive for a start. It is a fact, as the years roll by, additional sources of income opportunities arrive.

The location of the house you are planning to buy is also a thing to consider. Ideally, it should be near your working place. Make sure transportation facilities are available, accredited nearby school, amenities like grocery, market, park is available to achieve a normal living condition.

When you rent a house, it just takes a small amount to shell out for the deposit. A three months worth of rent is the amount deposited as security on the part of the owner. Ideally, renting a house would not entail the most expensive one, if the payment comes from the family's income. However, if the company is paying for it, go for the most comfortable house for rent.
Another thing if the family's source of income is employment in a company, and the father, or mother is reassigned every three to five years in different locations as a compensation to promotion, well renting would be the best rather than buying a house.

Renting a house with the family's income very stable but the source of employment would entail relocation of assignment of the employee in different places, renting would be fine. It would not matter if you

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