Are you thinking about moving? Whether you’re moving for work, you want to be closer to family, or you’re searching for a new challenge, you may be weighing up your options when it comes to finding somewhere to live. Are you at a crossroads? Are you unsure whether to buy or rent? If so, you’ve come to the right place! Here are some of the pros and cons of buying and renting to make life easier for you.
Most of us have aspirations to be homeowners one day, and often, we put pressure on ourselves to achieve this goal by a certain age. The truth is that there are many advantages of owning your own home, but it’s not all plain sailing.
Once you’ve got a mortgage, it’s highly likely you’ll end up spending less per month than you would on a rental property, and you’ll also be paying money into an asset that you own, rather than lining somebody else’s pockets. When you own a house, you also have the freedom to style and design it as you wish, you can undertake renovation work, and you can really put your stamp on it. You don’t have to seek permission if you want to paint a wall or knock down a garden fence. There’s also a great deal of pride that comes with owning a property, and many people find that they feel much more comfortable in a home they own, rather than a rented property.
Buying a house or a flat is rarely straightforward. The process can be incredibly stressful, and it can also take time. If you spy apartments for sale and you fall head over heels in love, there’s no guarantee that you’ll end up with the keys a few weeks later. You have to negotiate prices, draw up and sign contracts and hope that there are no glitches that knock the sale off-kilter along the way. Even if an offer is accepted, this doesn’t necessarily mean that the sale will proceed as expected and it’s fairly common for sales to fall through. Another disadvantage of being a homeowner is taking financial responsibility. If you’ve got a broken boiler or the roof is leaking, you can’t make a call to your landlord and have the problem fixed at no expense. You are now responsible for your home, and if anything goes wrong, you’ll have to cover the cost. If you do own a house or an apartment, it’s really beneficial to make sure you have insurance policies in place to protect the building and its contents. It’s also useful to have money set aside for unexpected emergencies.
The rental market is incredibly buoyant at the moment, and this is due to a number of factors. People tend to move around more and also, it’s increasingly difficult to save enough to put a deposit down on a new home. If you’re thinking about renting rather than buying, here are some advantages and disadvantages.
Renting provides an alternative to buying for people who don’t want to commit to a property on a long-term basis and those who don’t have money to put down on a property. Renting may cost more in the long-run, but it’s a much more affordable option for those who haven’t got a deposit ready and waiting to go. Renting gives you flexibility, and it may also enable you to live in a home that you couldn’t possibly afford to buy. For many people, it’s a convenient option, which fits in with their lifestyle and their budget. Another advantage of renting is being able to rely on a landlord or a management company to sort out issues for you. If you’ve got no heating or the window is broken, your landlord or landlady should cover the cost of repairs. Renting can also be a useful short-term option for people who are in the process of relocating, those who have recently moved or tenants who are working out their next move. If you need to move quickly, renting is an excellent option because you can sign the papers and get the keys in days rather than months.
Rental fees are often described as dead money, as when you pay rent, you’re giving money to somebody else rather than investing in your future. If you own a home, that asset is yours, and it should appreciate over time. If you choose to move, you can use the value of your home to fund that next step. With renting, you’re also limited to what you can do with the property. You may have a very flexible owner who is happy for you to make your own mark, but often, there are restrictions, and in some cases, you need permission for every minor change you wish to make. Rental fees are also likely to be higher than mortgage payments.
Which option is best for you?
There are pros and cons of both buying and renting. Often, deciding which is the best option comes down to your lifestyle, the stage of life you’re at and your financial situation. If you want to settle down, you’ve got savings, and you want to start investing in your future, it makes sense to buy. If you don’t have any idea where you want to be in a year’s time, you don’t have a deposit, and you’re keen on a more flexible arrangement, renting may be the best choice for you.
If you’re thinking about moving, hopefully, this guide has given you some useful information about renting and buying and enabled you to make a decision about which option is best for you. There’s no right or wrong answer, and everyone is different. It may be that renting suits you for now, but you’d love to own a home in five or ten year’s time, you’re happy to look for a long-term rental home, or you’re eager to keep climbing the property ladder. Weigh up the advantages and disadvantages and consider what works best for you.