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?
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…
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.
Let’s make a difference.
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