Friday, 13 January 2012

Rent or Buy

As a Globetrotting Executive, upon arrival at your new location, probably one of the first things you will be concerned about, will be where to live. Ever so often in the GT lifestyle, you are faced with the dilemma of whether to rent or buy, depending on which location you are in and how long you expect to be there.

I would advise doing some thorough research on this area on the Internet well ahead of time, so you have some prior knowledge of what to expect.

Some factors that could affect this decision are children and

  • how settled are they in school
  • does it make financial sense
  • is it safe enough for you to be out there on your own or would you prefer to live in community-style accommodation with Globetrotting Executives like yourself?

and the list goes on...

Most companies enlist the services of a local Relocation Expert who is familiar with the region and will provide you with information about the area, schools, where to shop, and good healthy gossip !

If your company does not offer a Relocation Expert, it is always best to work with a registered estate agent/realtor, unless you are very familiar with the city.

So, the big question - Should you rent or should you buy ?

This really depends on how long you expect to be assigned to that location, how much money you have saved and whether you feel it will be 'worth' it.

In some economies, buying a house will always give a good return on investment, especially if you stay long enough to profit from the deal. Study the trends for homes in the neighbourhoods you might be interested in, check out house prices over a period and see if there is depreciation or appreciation, consider the taxes that you will have to pay, discuss your concerns with your relocation agent and then make your informed decision.

A rule of thumb, some say, would be 'if you are staying less than 3 years, rent. 4 or more - buy!'

Another option would be to rent initially, say for a period of 6 months, just for you to understand the intricacies of the home ownership process in that country, then you buy.

So, how do you go about your decision making for your new home, in your new location? What are your major concerns with renting or buying?  

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