Buying vs. renting – which is right for you?
The big question that always causes quite a stir with property hunters, is it better to rent or buy your home?
Of course, there are pros and cons for either of the two options, your choice depends entirely on your personal circumstances and your future plans.
Owning your own home can provide you with a sense of security and the freedom to have creative reign on the property, however it can also put unwanted pressure on your finances. The Office for National Statistics revealed that the average mortgage was 3 times higher than the average buyer’s income.
In most cases, renting a property can offer a greater amount of flexibility, which is handy for modern professionals who are constantly upping sticks and moving elsewhere.
Buying a home is an investment for your future
Buying your own home gives you the chance to create a real investment, your monthly payments are going towards your future, rather than a landlord.
The value of your home should appreciate over time (economic volatility depending) and if you do decide to sell, you could generate a profit. However, what comes up can also come down, the value of your property may decrease, so be careful and take your time when you initially scour the market..
A future investment isn’t for everyone, if you don’t know what is going to happen in the next ten years, then buying a house definitely isn’t the right option for you. Maintain your carefree spirit by opting to rent until you decide to settle down, giving you the freedom to move around as often as you like without the financial ties of owning a property.
Renting your home gives you more flexibility
Renting not only gives you the flexibility of being able to regularly move properties, it also enables you to live in affluent areas that might otherwise be too expensive to buy property in.
Landlords are spending more money in refurbishing their properties to attract prospective tenants, ensuring that they are fitted with state-of-the-art kitchens and bathrooms. Provided that you don’t mind packing your stuff into moving boxes every 12 months, you could even live in a luxury new-build every year.
Another advantage of renting is that you don’t need to pay for maintenance work, if something breaks, simply inform your landlord and they’ll fix the damage. As a tenant, you only need contents insurance, which is beneficial if you don’t have the savings available to pay for a catastrophe such as substantial water damage.
Buying isn’t the final option but it shouldn’t be taken lightly
Although buying a house may seem like a lifetime commitment, most mortgages are transferable and you should be able to move it to your new property.
Consult your mortgage lender before you make any drastic decisions, there may be fees involved and your lender might wish to value your property.
Buying a house is not a decision that should be taken lightly. If you have a feeling that you would want to move house in the near future, for example due to relocating for work, then buying may not be right for you. If you are unsure, you are better off playing it safe and renting.
If you have any concerns about your property options, speak to one of our expert advisors who can provide you with a much clearer picture of the current market and what might be the best solution for you.