Renting Or Buying A Property. Which Is Best For You
There are two schools of thought when it comes to finding a place to settle and raise a family. Is it better to rent or buy? This is an argument that will continue to rage until the end of time. It is an argument where the reasoning is purely a matter of opinion. Each side of the argument has its positive and negative points. Sometimes circumstances may dictate which path a person takes and, therefore, the decision is taken out of their hands, and they can relax and enjoy it, instead of worrying.
Here are the advantages and disadvantages of renting versus buying.
- Renting – Renting a property has traditionally worked out cheaper than buying. At least for the first ten years anyway while mortgage repayments are stretching budgets to the limit. The rent is paid either weekly or monthly and will increase yearly. Rent will need to be paid while you live in the property, however, long that may be. If you live in the property for twenty years or more it is quite possible that the rent will be more than a mortgage would have been to buy it.
- Buying – Buying a property is an expensive undertaking. The deposit alone is likely to run into tens of thousands of pounds. This is followed by high mortgage payments that are a strain on finances for many years to come. Buyers often stretch themselves to the limit and then wait for wages to rise and ease the burden of the repayments. This can take ten years or more and is often a hard period to endure. So, if you were on an average income, would you jump on the property ladder using opportunities provided by first time builders? If you visit homestart, you will get an idea of what is potentially available to you. Many people on average income decide to rent instead.
- Renting – When renting a property you have nothing invested in it. The investment belongs to the landlord. No matter how long you pay rent for, it will never belong to you.
- Buying – The house is yours as long as you keep up payments on it until the end of the agreement. House prices continue to rise, so even though your mortgage payments stay the same, and you are still struggling; you are, in fact, better off as time passes.
- Renting – The house does not belong to you. You cannot make any changes without the landlords permission, and you will never benefit from money invested in alterations, even if it increases the value of the property. This applies to the garden too. We are a nation of garden lovers, but all the work you do in the garden is ultimately for the benefit of someone else.
- Buying – When you own the property, you have the freedom to do what you want with it. The garden can be landscaped; the loft converted to extra bedroom; the kitchen and bathroom refitted; all of these things are for your benefit. If the value of the house increases because of these upgrades, it is you who will benefit from it.
- Renting – Though a lease may insist on a period where notice must be given, people who rent are free to move from place to place as they wish. Staying in one place and putting down roots for the foreseeable future isn’t in some people’s nature, so renting is ideal for them. When the house is initially rented, a deposit will have been required. When they leave, and providing the house is in good order, they will get that deposit back. This can then be used to secure the property they are moving to.
- Buying – When the property has been bought, moving is often a complicated, long drawn out, and expensive job. It involves solicitors, changes to mortgages, and all other manner of headaches. It is often cited as one of the most stressful activities that anyone can undertake. The existing home will need to be sold, and that can take months, if not years, before the new home can be bought. The move often relies on a chain of people all needing to sell their homes, buy new ones, and move at almost the same time. The chances of a house move running smoothly are pretty low when all of the things that can go wrong are considered.
- Renting – When renting a home there is little financial commitment to worry about. As long as the rent can be paid on time everything else is plain sailing.
- Buying – Once someone has signed on the dotted line, they are committed to years of financial responsibility and the implications are frightening. If fortunes change at any time during the life of the mortgage, the property could be repossessed. Therefore, house buyers are never really secure until the mortgage is completely paid off, and the deeds to the property are theirs. It is common for people to lose their homes in times of recession, and it is a heartbreaking experience. Often, people who have been through the process and finished in rented accomodation, say they will never risk buying a home again.
- Renting – There are very few maintenance costs for a tenant to bear in a rented property. If they cause some accidental damage then it is only right that they fix it at their own expense. Maybe it will be stated in the lease that the interior decorating is the responsibility of the tenant too but that only goes as far as a lick of paint. Usually landlords prefer to do this work themselves anyway.
- Buying – If it breaks or wears out in a private home, it is up to the owner to fix it and bear the cost. This can run into thousands of pounds if there is damage caused by floods, for example, where there is no insurance in place. Properties need money spending on the regularly to keep them in good condition. These costs add up over time and are surprisingly high.
As you can see, there are benefits and drawbacks to both lifestyles. If you like to wander, renting is definitely for you. If you like to stay in one place, have a secure job, and want to leave something behind when you are gone, buying is the answer. After reading this, you will surely know what is right for you.