There are various positives and negatives of both renting a property and buying a property outright, therefore, it can be hard to decide which one works best for you. Of course, it depends largely upon your financial situation, as many people cannot afford to purchase a home without saving up for several years.
With that in mind, here is a closer look into both renting and buying, providing you with more insight into which of the two would work better for you.
Renting: The Positives
- Usually, when renting a property, you are paying one monthly fee to a landlord or letting agency, that covers all of your expenses. Whether you are renting a room in a house, or the entire property, the cost of your rent factors in monthly costs such as your water and electricity bill, or council tax.
- Your landlord is also responsible for ensuring the property is well maintained, meaning you can reach out to them for support should something get damaged (so long as you have not broken it yourself, otherwise you have to face up to the repercussions!)
- Renting often means you can live in an area where you may not be able to buy, for example, most people living within central London rent properties as it is simply too expensive to purchase there.
Renting: The Negatives
- Some people believe that regularly paying rent is a waste of money, as it can be better used placed into a savings account.
- You are at the liberty of your landlord, meaning they can increase the costs of rent – and there’s not much you can do about it.
- The home isn’t technically your own, which means you aren’t able to make any home refurbishments or changes without first seeking permission from your landlord. This can be particularly difficult for those who want to be creative and design their ideal home.
Buying: The Positives
- Buying a home is a long-term investment, for which you can receive a lot of money in the long run, especially if the value of your property increases over time.
- As you own the home, you can make any changes you desire. This gives you full creative freedom, though you may have to discuss any changes you are going to make with those you live with.
- When you own a home, you also gain more privacy. This means no unannounced visits from your landlord!
Buying: The Negatives
- Buying a new home is incredibly expensive, and comes hand in hand with numerous hidden costs that people often neglect to think about, such as surveying and stamp taxes. This means that even those who are great at saving money can struggle.
- When renting, you have a little more freedom of movement. For example, if you lose your job, you can terminate your contract (with appropriate notice). However, you do not have the same freedoms when you own the property.
As you can see, there are numerous pros and cons of both renting and buying a house – however, the most significant factor is your financial stability. You can use an online app, such as that provided by MortgageCalculator, to better understand your finances and make a decision on buying vs renting. They take into consideration your credit score, income, and the cost of buying a home to help you make the best possible decision.