The rent or buy debate is one that will always be discussed. To be in a position to buy is certainly a privileged one and not all are able to look at both choices, but if you are considering your options and are unsure which makes the most sense we are here to look at the advantages and disadvantages of both to assist you in one of the biggest decisions you may make.
The advantages of buying
Security – Once you have your home its yours to do with as you wish. You can decorate, make improvements and even add to its size (planning permission permitting) which in turn could add value to your home. Any changes made will be yours without the risk of a landlord asking you to move on.
Investment – If house prices rise, you could make a profit when you come to sell it. This could enable you to climb up the ladder and buy a bigger place next time round. You could also buy a property which needs work doing to it and again, sell for profit at a late date.
Save money – Depending on your location, it may actually be cheaper to buy, with mortgage repayments being lower than the monthly rent.
The disadvantages of buying
Upfront costs – Saving for a deposit is not an easy task, and can seem near on impossible if rent is being paid also. Add stamp duty and legal fees into the mix and its a somewhat daunting prospect.
Unexpected cost – The repair and upkeep to your home will now fall at your feet, as opposed to your landlord or parents. A contingency plan of some savings would always be recommended for emergency situations for at best, a small leak, at worse a new boiler.
Interest rates – These will rise and fall and what you started off monthly budgeting for, could change in an instant.
The advantages of renting
Flexibility – Tenancies can be 6 months, meaning you have the option to move at short notice if maybe work changes or your choice in location alters.
No unexpected costs – all maintenance work on the property will be covered by the landlord and leaving the stress of finding a reliable contractor to someone else.
Quick process – Finding a rental property and moving in can be relatively quick as apposed to buying. There is the option of renting fully furnished also, which could save time and money purchasing white goods and furniture.
The disadvantages of renting
Lack of control – The property is not yours, you are in the hands of someone else, who could decide to give you notice if they wish to sell. You may also be reluctant to spend any money on improvements, incase this happens.
No financial long term gain – You are paying for someone else to have the benefits of being mortgage free in the future.
Rent increase – Your landlord could increase your rent, and although the increase must be fair and realistic, it could still leave you financially vulnerable.
So, buying a house or renting – which is better?
It really depends on what stage of life you’re at and what your priorities are. Despite the significant upfront costs, it’s often cheaper to buy a house than rent. If you are able to afford to buy and your long term goal is to build a future with stability, owning your own home could be the best choice for you. However, if you prefer a more flexible approach to life and haven’t yet decided where to settle, renting may give you a non-committed, short term home, before you plan your next stage in life.
For further information on property rentals or purchasing a property, please contact us here.
