Should you rent or buy a home?

Buying a home is a lifelong goal for many people.

 

But is it always the best option, and is it right for everyone?

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We take a look at the pros and cons of each option. Remember that just because lots of other people are aiming to buy a property, it doesn’t mean that you have to have the same goal.

reasons why buying is better

  • You get to slowly work towards paying off your home loan. You can live rent-free once it’s paid off, which will eventually give you a lot more spending money each month. 
  • Your monthly mortgage payments go in your own pocket, rather than going to a landlord. 
  • Your property is likely to go up in value and you will get to keep the rewards when you sell. 
  • Mortgages can be cheaper each month than the equivalent rental value for a similar property in the same area. 
  • You have the freedom to change the property as you would like to – from drilling holes to painting walls and building an extension (subject to planning permission). 
  • You can have your own pets without having to get approval from your landlord. 
  • Your renovations and changes could increase the value of the property. 
  • Your house is yours. A landlord cannot force you to move if they want to sell the property you are renting. 
  • There are no deposits to a landlord and so they can’t keep any of your deposit when you move out.

Scroll down to find out why renting may be better for you… 

"Buying a home is a huge commitment, so make sure it's right for you before making a decision."

Reasons why renting is better

  • You have the flexibility to move around more often and without any fees each time. 
  • If something breaks or needs replacing in the house, the landlord is responsible for replacing it. This means costly problems, like needing a new boiler, are not a worry. 
  • You don’t need to find replacement tenants at the end of your contract – you just wait until your contract ends and you can walk out of the door with no strings attached. 
  • If the property is not what you expected or if you find out you have nightmare neighbours, you can get away more quickly without the hefty cost of buying and selling a home. 
  • The rental process is faster and (generally) less stressful than the homebuying experience. 
  • Tenants need a small deposit of around one month of rent up-front to secure a property, which is much less than the large sum needed for a house deposit. 
  • Individuals on a good salary might not be able to afford to buy a high-quality home, but their monthly income could allow them to live comfortably in a great rented property in a desirable area instead. 
  • You won’t have any unexpected costs when you rent – just your monthly rental cost plus bills. This is unlike mortgage costs, which can fluctuate based on inflation. 
  • If you fall out with your housemate or break up with your partner, you don’t have to worry about deciding what to do with the property ownership. 
  • You won’t lose money if the property’s value goes down. 
 

Which would you prefer? Choose what is best for you at the moment – and this could change in the future. 

Do you need help to save for a house deposit? Download sync. On iPhone, Android or Huawei and use our budgeting features to help you hit your monthly savings targets.

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