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Buying Or Renting A Home: Knowing What Is Right For You

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Should you rent or buy a home? This is a difficult question, and it depends on your circumstances. It’s not only a question of what you can afford, as your lifestyle should also be taken into account. For example, if you aren’t planning on sticking around in a particular town or city for long, there is little point in buying a home. Alternatively, if you are sick of paying money to a ruthless landlord, and you don’t plan on uprooting for a long time to come, it may make sense to consider buying property.

In financial terms, you should consider the housing market. At the time of writing, the growth in house prices has slowed down in the UK, and in some areas, such as London and the south-east of England, house prices are falling, according to The Guardian newspaper. On the other hand, there is a rise in house prices in Northern Ireland and the south west of England, so if you are thinking about buying, you need to check the housing market in your area. It may pay to wait a while before you make a decision. However, the cost of renting a property is also on the rise according to recent data, but again, it depends on where you live. 

So, should you rent or buy? There is no easy answer, and you should take the time to speak to your local estate agent for qualified advice. However, we have compiled a list of reasons why you should consider the option of buying or renting a property that may help you come to an informed decision.

Buying a home

- The property is your own. This means you can do what you want with it (subject to planning permission), and you don’t need to be tied down to restrictions set by your pesky landlord. You choose how you decorate your property, and you can bang as many nails into your walls as you want, without running the wrath of a landlord during an inspection. There is no rental agreement in place, so you can also have as many pets as you want, and completely upend the house and renovate if you so choose. Having the freedom to turn the house into a home of your dreams is entirely within your reach if you have the budget, and this is the major advantage of buying rather than renting a home.

home buying

- Buying a property is a considerable investment, but you can have the peace of mind knowing that your monthly mortgage repayments are going to the bank to pay off the house, and not lining the pockets of your landlord. There will come a time when the mortgage will come to an end, and the house will be completely yours without the interference of your bank. For those people who rent, there is no end in sight, and they could end up paying a lot more money than the house is worth, much to the delight of the landlord.

- You do need to choose your house wisely, but a good investment may benefit you in the long-term should you decide to sell.  Provided you have moved into an area that people would like to relocate to; you may be able to sell the property at a greater value than what you originally paid for it. Again, this depends on the rate of inflation in the housing market, but you can still add value to the property by extending it with a loft insulation, conservatory, etc.

- At the moment, mortgage rates are down, so if you choose to buy in the imminent future, there will be less interest on your repayments. However, you do need to check with your bank and shop around for the best deals before committing your money to a down payment. It is often wise to take out a fixed rate loan, ensuring your repayments will stay at a consistent level.On the other hand, a variable rate loan may be advantageous if the interest drops significantly during your repayment term. Those who rent are often at the whim of their landlord, so when it comes time to renew the lease, they may have to pay more money with a new rental agreement or be forced to move if the cost becomes unaffordable.

- Having your own home gives you added security. By not leasing, you can stay rooted for as long as you want. Not only will this benefit your life, but it will also help your family, too. If you have children in school, there will be no need to remove them if you suddenly need to move because of problems in the property. Should you have moved somewhere close to your area of work, you will not have to readjust travelling arrangements or move jobs through having to leave a rented accommodation. You will also be able to become part of the local community, make friendships, and take part in activities close to your home. Knowing you won’t have to leave will give you a greater sense of loyalty to the place where you live.

Renting a home

- There are many hidden costs in buying a home, so paying rent rather than a mortgage may be more cost-effective, especially in the short-term. While renting, you may be in a position to save up for a home in the future, without having to worry about the upfront costs in buying straight away.

- There is no reason why you can’t live in relative luxury in rental accommodation. When you are looking for a studio apartment for rent online, you may find something that suits your needs, whether you are looking for something for yourself or an extended family. It is a myth that rental properties are second-best, and as long as you have a decent landlord, you could find something that can resemble your dream property.

house renting

- Buying a home is a risky proposition, and there is the possibility of it being a potential money pit. When it comes to renting, any maintenance costs and repairs should be covered by your landlord, provided you haven’t been reckless in the accommodation. You will still have to pay ongoing costs, such as contents insurance and your energy bills, but your landlord will always be responsible for the general upkeep.

- You have greater flexibility when renting, depending on the length of your lease. If you are suddenly in the mood for a career change or the needs of your family alter, you have the freedom to move when your lease expires. Home buyers may have to deal with higher mortgage rates, but if your landlord tries to hike the rental price, you are in the position to tell him where he can stick his costly demands!

- Renting is great for people who are not in the position to buy, such as students or young parents. While rental costs differ depending on the area you want to live in; you may still be able to find something affordable. Those on a lower income may have to live in a smaller accommodation, such as a bedsit or flat, but this may not matter if the area you live in is more important than the size of the property.

Finally

As we said at the beginning, whether you rent or buy is dependant on your financial and lifestyle position. You need to do what is right for you and your family, so check with the experts and keep an eye on the housing market online. Whatever you decide, we hope you find a wonderful place to live, now and in the future.