It’s an ongoing and seemingly never ending debate. Should I buy or rent my home? Although renting can be seemingly more achievable for the average person due to the high deposit costs when you go for a mortgage, it’s not impossible. It may seem like making an investment in property would be the obvious sensible choice with more positives, however the option of renting is a lot more suitable for certain lifestyles and financial situations.
Whatever your viewpoint, there are undoubtedly pros and cons to both buying and renting your home.
Renting your home
First of all, let’s look at the positives and negatives of renting where you live:
- It gives you a sense of freedom. Not only are you free to move at your liberty without penalty whenever your lease ends, but if your landlord decides to bump up prices, you’re free to look elsewhere that’s cheaper. If you’re in a job where you need to move around a lot, or even if that’s just the way your lifestyle is, renting could be very suitable for you.
- However, it does also mean that even if your landlord suddenly decides to sell the property or even live in it themselves, you’ll have to find elsewhere to live. The problem of getting settled when privately renting, as that there’s no guarantee you’ll be able to stay there This is definitely something to consider if you have a family, particularly with young children.
- When you’re renting your landlord is actually liable for any repairs that need doing within the This means that if there are any architectural or internal issues, you’ll save money in this respect by not being liable to pay for them.
- If you do find that you want to move home, you also don’t have the hassle and expenses of putting your home on the market and finding a buyer.
- You also won’t have the long-term commitment of a If commitment isn’t your thing, and you’re not quite sure where you want to end up, renting could be the answer for you.
- It can however, actually be more expensive renting in the long Because of low interest rates, mortgages are actually relatively cheap, and because of that you could end up paying more per year than you would if you had a mortgage.
- Your rent can rise whenever your landlord decides so. Although they do have to give you a minimum of one months notice if you pay weekly, or a minimum of six months if you have a yearly tenancy, you are ultimately at the mercy of your landlord in terms of how much you pay.
Buying your home
Of course, it’s also important to look at the pros and cons of buying your home:
- A huge benefit is that once you’ve paid off the mortgage entirely, the property is yours to do as you wish with it.
- However, it is a big commitment. Being tied to a mortgage means you’re fully responsible for the repayments each month and if you do want to move, you are entirely responsible for selling the property on.
- Selling doesn’t always have to be difficult though. Companies such as https://www.readysteadysell.co.uk/ are now available to ensure that you can sell your home quickly and easily for cash.
- If your home does increase in value, you can use its equity which is its market value minus the mortgage debt, to help either buy a bigger home or even to go into your pension pot.
- You yourself can decide to make home improvements in order to increase its value, without having to ask the permission of anybody else.
- As previously mentioned, with lower interest rates it can turn out cheaper yearly to buy rather than rent.
- However when interest rates do rise, your repayments will follow suit, so you’ll have to ensure that you’re able to afford this.
- Because the property is entirely your responsibility, you’ll have to also ensure that you can fully afford any repairs or maintenance that may be necessary, and it’s not always cheap.
- If you decide to buy with a partner or spouse, if you split up or go for divorce, owning the property makes this a lot more complex of a process than it would if you were renting together.
- The flexibility you get with renting isn’t applicable here. If you need to move around a lot for work, or are planning on relocating in the future, renting is possibly a more sensible option for you.
It’s plain to see that there are positives and negatives to both renting and buying your home, it just depends on your personal circumstance, and figuring out what is right for you.