It’s never easy to know whether it’s time to stop renting and buy instead.
You don’t want to make the wrong move, so this guide will help you decide whether renting or buying is best for you.
Conventional wisdom suggests that renting is ultimately worse value for money than buying. But is this necessarily true? There are benefits and drawbacks to renting, so let’s go over them. The biggest benefit of renting is the flexibility it offers. This means you can move around a lot without paying for the cost of buying and selling homes all the time. So, if you’re not yet ready to settle down, visit Taylors Lettings Agents because renting is the way to go for you.
There’s also less risk involved in renting compared to buying. When you buy, you have to worry constantly about interest rates the market fluctuations. Whereas if you rent, these concern needn’t enter your head. You also don’t have to pay legal fees, stamp duty and survey costs if you rent. But you do if you buy. This is a saving that you should take into consideration.
But you are getting no return on your money when you rent. No matter how much you pay out to a landlord, you’re never going to own the property, so you’ll have no fixed assets. Dealing with landlords can sometimes be frustrating and difficult too, but it’s something you have to do when renting.
If you decide to buy a property, you’ll have much more security. The house will be yours, and no one can kick you out. Whereas if you rent, the landlord could move you on at relatively short notice. This also means you’ll have much more freedom to do what you wish with the property. You’ll be able to redecorate it how you wish without having to worry about upsetting a landlord. This makes a big difference if you’ve previously been used to renting.
The property will act as an investment too. It’s an asset in your name, and you’ll have it to fall back on no matter how bad your personal finances get. And, if you keep hold of it all your life, you’ll be able to pass it on to someone after you’ve passed away. This is a major factor to consider if you’re a parent. Being able to pass on a house is an aim for many parents.
The main downside to buying is the cost involved. You’ll have to save for a long time to be able to put down a deposit on a house. And then you have to make sure you’re able to meet the mortgage payments each month. This can be a big drain on your finances, so make sure you can afford it before you buy.
Rental costs are very high nowadays, especially in big cities. So, if you’re ready to settle down somewhere, buying is definitely the best option for you if you can afford it. But if you’re still young and you’re not looking to settle down, renting is still a great option. Just make sure you search the market for the best prices before you sign a tenancy agreement.