Buying or Renting, Which is the Best Option for You?
27th May 2019
Buying a property is one of the biggest financial decisions you can make, and it takes a lot of careful consideration before you sign on the dotted line.
It can be very easy to fall into the mindset that renting is the only option available just as it can be easy to think you have to buy the first property you see the minute you’ve saved for the deposit. In reality there are multiple pros and cons when it comes to the decision “to buy or to rent?”, read on to find out which is right for you.
It’s no secret that buying a home is expensive but there are savings to be made once initial costs are out of the way. Many people spend their entire lives renting only to find out that their rent is actually more expensive than what they’d be paying back in mortgage costs. If you have enough money for the deposit, it might make sense to buy instead of rent. That being said, it’s important to be aware of the costs associated with buying which are:
- The deposit
- Survey costs
- Stamp duty
- Removal costs
- Legal costs such as solicitor’s fees
- Monthly bills
Remember, if you are on low income or are a first time buyer there are housing schemes in place to help you buy a home.
Benefits of Buying
- Once you’ve paid off your mortgage, you will own your home and not have to pay any more money to live at your property
- In some cases, mortgage payments can actually be cheaper than what you’d pay in rent
- If your home increases in value, you could use the equity to help buy a bigger home
- You can decorate without having to ask a landlord or invest in home improvements to increase your home’s value
Drawbacks of Buying
- It’s a big commitment with many initial costs
- Increases in interest rates can raise mortgage repayments
- It’s less flexible than renting, and you may find it difficult if you decide to relocate
- If you get a joint mortgage and separate, it can be complicated to sell the property
Benefits of Renting
- Finding a home is usually quicker when renting than it is with buying
- You have more freedom to move when you please
- Your landlord has to pay for repairs and renovations
- You may be able to afford to rent a bigger home than a home you could afford to buy
Drawbacks of Renting
- All the money you invest in the property goes straight to the landlord
- Your landlord can decide to sell or get new tenants meaning you may suddenly have to move out
- You may be restricted in terms of decorating
- Any improvements you make go into a property you will never own
How to Decide?
Ultimately, the decision will come down to your financial and personal circumstances. You may have enough money to buy a house right now but if you don’t feel secure in your job or think you may want to relocate or travel at some point in the future, buying may not be the best option for you. Likewise, you may think renting is the only option available to you but in actual fact it could be cheaper in the long run to buy a house using a government scheme.
Whether you’re thinking about buying or renting, pop into one of our offices to look at the properties we have available or visit the Home Estate Agents website.