Buying a home is a massive achievement and something that many of us aspire to do at some point in our lives. Putting your money into bricks and mortar is almost always a safe bet. However, it’s trickier than ever these days to get onto the property ladder. Renting does have it’s merits too, here are some things to consider when you’re weighing up whether you should own or rent.
One of the biggest downsides to purchasing a property is having enough money for a deposit. Since the average house price in the UK is now over £220,000, and you need at least a five percent deposit, that works out to £10,000. This is a serious amount of cash and something that’s going to take most people many years to save for. You then have to factor in things like surveys and legal fees too; property solicitors like Bannister Preston can assist you in the process, but it’s still money that you need to account for. All in all the upfront costs of buying a house are massive. On top of this, you are also responsible for things like buildings insurance, and if anything goes wrong with the property it’s down to you to fix. While you will need to raise money for estate agent’s fees, a deposit, and your first month’s rent when you’re leasing somewhere- the costs are considerably less. Plus, repairing anything that goes wrong (providing it’s not damage caused by you) is down to the landlord. So you don’t have to foot costs like broken boilers, electrics, plumbing or other jobs that can run into many thousands.
From an investment point of view, buying wins over renting every time. Every month when you pay your rent this is money that is going nowhere, even if you rent for twenty years once you move out of that home the money is gone forever. If you’re in the process of buying, every mortgage payment gets you closer to owning your bricks and mortar. Since property accumulates in value year on year, if you choose to sell later down the line you will get what you put back in and more.
When you purchase a home, you’re it for the long haul. It’s not quite as simple as just selling up and moving elsewhere (unless you’re prepared for a lot of time and hassle). Renting on the other hand gives you more flexibility. If you’re not dead set on where you want to live or want to experience living in different locations or cities before you settle then renting is a great option. You can take a lease for six or twelve months and live there before giving your notice and moving. This is useful as it allows you to work out what you really want from a property. You might not think a small garden, living on a big road or in a house with a downstairs bathroom would bother you that much. Months down the line it could be a different story. If this is a house you’ve purchased, you’re stuck with that decision unless you want to pay for renovations.