Equestrian property – rent or buy?

Equestrian property – rent or buy?

Making the decision to move? Should you rent or buy?

Renting a house or buying your first equestrian property can be an intimidating and stressful period in your life. All the terms and conditions and hidden costs involved can turn out to be messy if you don’t know what you are in for. Instead of becoming overwhelmed, just look at it as searching for the perfect riding boots. Browse catalogues, grab a brochure, ask a best friend or click online.

Rent or buy?

The choice seems easy on the surface, but what would benefit you in the long run? Like the boots, oxblood leather might be what everyone Europe is wearing, but does that really suit your personality, your lifestyle and your pocket? Would it still be what you would want during next year’s show season?

When buying or renting a property, search for what suits your budget, your style and your goals. However, before putting pen to paper, know what to expect after the property transaction is complete. Like buying anything of a large monetary value, there are financial responsibilities, as well as maintenance and insurance involved. But, when you buy a home, it is your own. You can paint and decorate it, possibly have your horses on the property and create the perfect arena. It is also a long-term investment that can offer growth in personal wealth.

When you rent a property, you’re buying into flexibility. Properties for rent are usually quicker to find, and come with fewer maintenance worries and responsibilities. However, your freedom to transform your living area or stable yard is limited. In addition, any significant changes such as buying more horses or choosing to paint the stables requires permission from the landlord.

The cost factor

Saving for anything, be it property, a well-deserved holiday, or your baby’s first birthday, should be a continuous process and not end when the desired amount is reached. There are various costs involved when it comes to buying or renting property. So before the excitement of moving fills the air, make sure you are prepared for all removal costs, possible storage costs as well as a home deposit, which will secure your rightful place as a homeowner or renter in your new home.

Thereafter, make sure provisions are made for costs involving utility fees such as water and electricity. In the case of a home buyer these will include monthly home loan instalments, homeowner’s insurance, and municipal rates and taxes. For a home renter, the monthly fees will be contributions towards water and electricity and any other costs agreed on in the rental agreement.

Saving a little more will allow you to buy those boots you really want and even a slice of cheesecake. Similarly, saving a little more for a property and making sure your credit record is squeaky clean could help secure a promising home loan and help loosen the grip of any financial strain. And that little extra will leave you a happier property owner with a few rands to spare.

Owning a home offers the long-term benefits of security and property value growth resulting in personal wealth. Making home payments on time also improves your credit profile and this in turn will benefit you in the long run. Renting a property requires no long-term commitment and can be ideal for those who may need to relocate in the near future. Renting also gives you the option of staying in an area in which you may not be able to afford to buy. But whether the decision is between a black or tan pair of boots, or renting or buying, look at all the factors and make a choice based on your needs and your budget.

This article first appeared in the January 2015 issue of HQ magazine. For great subscription offers visitCoolmags.