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Buying Vs Renting

Buying Vs Renting

The buying vs renting debate has been making the rounds for a while, so we’re taking a look at the pros and cons of buying and renting, to hopefully shed some much-needed light on the situation!

What is more secure?

Renting provides a level of flexibility that owning a home doesn’t. With one month’s notice, you can move from one property to the next. This can be very beneficial for people who don’t like to feel tied down, however, for long-term security, owning your own home provides this in a way that renting can’t. Your living situation is not reliant upon a landlord, you don’t have the fear of a sale looming over you and rather than paying off someone else’s mortgage, you’re clearing your own, meaning that pocket of funds is ever-growing and is an investment you can utilise in the future.

Which is cheaper?

Renting, on the whole, is cheaper than buying a home, however, monthly mortgage payments are usually less – so this is very subjective and dependent on your own financial situation and how far into the future you can see. Rents are also likely to increase year on year regarding inflation. Whereas with mortgage payments, you can usually find very attractive fixed rate deals, and your payments are likely to decrease over time as you clear more interest and start working towards your capital.

Pros of renting

  • The flexibility if you want to move quickly
  • You aren’t responsible for the repairs on the property
  • It is much quicker to rent a property than to buy one
  • You can rent in an area you love, where the price of buying may be out of your budget

Pros of buying

  • Long-term investment
  • Monthly mortgage payments are likely to be cheaper
  • No concerns over being asked to move/a sale of the property happening whilst you’re in situ
  • The property is your own, so you can decorate however you choose

Cons of renting

  • You’re clearing someone else’s mortgage rather than your own
  • You can be given notice at any time
  • You can’t decorate the property to your specific tastes
  • Repairs can take a while as they need to go through the landlord

Cons of buying

  • Selling a home can take a long time, so if you wanted a quick sale, you could end up losing money on your property
  • You’re responsible for the damages and repairs in the property
  • Owning comes with a lot of extra costs such as remortgaging fees
  • The property market is never guaranteed, so there is always a risk you could lose money in the long run

So, what should I do?

All in all, there are many things to consider which will help make the decision for you, such as:

Where do you see yourself in 5 or 10 years’ time and are you ready to settle?

Do you care about the appearance of the property, or can you wait to put your own stamp on your home?

Are you financially ready for a large and long-term commitment, or are you not ready to take the plunge yet?

It isn’t a decision to take lightly, and honestly, there isn’t really a correct answer, it’s all about personal preference and whether it is the right time or not. If you’re financially stable, it could be a great time to get on the property ladder and if you’re not, having that level of flexibility while you save will be incredibly beneficial.

If you’re unsure of what to do, you can always seek help from financial advisors too and evaluate your current situation. You can also check out our tips on How to save for a mortgage deposit, if you’re ready to start working towards your own home!