buying vs renting – which is right for me?
There’s no doubt about it, house prices have increased drastically over the past year and it’s led many to question, “am I better off buying a property or renting one?”
At The Money Partnership, we want to help you identify the best solution for your circumstances. So, let’s take a look below at the benefits of both buying and renting…
Buying
You spend less (in the long run) - It’s true, This is Money revealed, “buying a home instead of renting could leave you £352,500 better off over 30 years - even if house prices never rise.”
No rules - When you buy a house, you don’t need to ask for permission when you want to decorate, and you can have as many pets as you like! It’s your property and you can put your own stamp on it; not to mention that any modifications you make will probably increase its value.
You own it - This might be a bit of an obvious one, but it’s worth mentioning - the house is yours. There is no landlord that can decide to end your contract, make changes to the amount of rent you pay, or even decide to sell the property. As a homeowner, you’ll have peace of mind knowing that you’ll never be evicted or forced to move because of factors outside of your control. Buying a house is a big commitment, but you can’t put a price on knowing that you’ve made a long-term investment for yourself, instead of funding your landlord’s bank account.
Capital growth - Property prices tend to increase steadily over time, but in the past year they shot up by 8.6%. This is probably one of the top advantages to owning your own home: you can make money from nothing! If you buy a house, it will most likely go up in value over the years which means more equity.
Renting
No mortgage, no debt - When you buy a house with a mortgage, you are taking out a loan. With renting however, you owe money to nobody; you pay your rent and bills and that is that. Missing a payment of course won’t affect your credit score (although your landlord wouldn't be too pleased!)
No maintenance costs - When you’re renting, your landlord is responsible for all the maintenance and repairs in the property. Your washing machine has stopped working, no problem: you just give your landlord a call and he/she will fix it with no additional costs to you.
More flexibility – One great thing about renting is that if you’re one of those people that likes change, you can move easily. It’s likely you haven’t accumulated too many things and you wouldn’t need to go through any legal process.
No large upfront costs - You may be required to put a bond down when you start renting a property, but compared to buying a house, this is a small upfront cost to pay.
As you can see, renting might be a great short-term solution when you need that flexibility and can’t afford to put down a mortgage deposit. However, with buying, you’ll feel more financially secure, with a permanent roof over your head and your money going towards something which you will eventually own.
If you’re looking to buy, don’t forget to follow Bayside Estates on social. They’ve got new properties coming onto the market every day! Or if you have any questions about obtaining a mortgage, you know where we are 😊
