There are two choices when it comes to property. You can either buy or rent one. The decision is heavily influenced by the most affordable option. In many parts of the UK, the average monthly rent is higher than the mortgage payment. If you can pay the deposit, buying is the best way out.
Nevertheless, parts of London such as Islington feature cheaper monthly rents.
Should you buy?
Owning property could be your long-awaited dream. Think about the following advantages and disadvantages of owning a home.
- Your monthly payments contribute to your house ownership and not into a landlord’s business account. You could say that you are living in your own house.
- A rise in house prices is likely to benefit you financially if you decide to sell later on.
- Any improvements carried out in your house are likely to increase its value.
- You have the freedom to renovate the house in a way that best suits your needs.
- It involves paying a large sum of money to cover the deposit, legal cost, insurance, stamp duty and mortgage fees. You might spend some more on furnishings.
- You could lose your home if you fail to pay the required amount at the end of each month.
- Mortgage rates could mean higher payments.
- Downsizing could take a long time since you need to sell the house first.
- You need to take care of all maintenance and repair tasks. Emergency breakdowns could cost you a huge amount of money.
Should you rent?
If you can’t afford to buy a house, renting could be the best way to get access to housing.
Benefits of renting
- It is easy to relocate.
- Falling property prices don’t affect you.
- It is easier to budget rent payments because the rates don’t shift as much as mortgage payments do.
- You might be able to pay for a better home in a more affluent neighbourhood.
- You don’t need to cater for emergency repairs and regular maintenance tasks.
- It takes a relatively short time to find a place to rent.
Drawbacks of renting
- The amount paid to your landlord doesn’t make you the owner of the house.
- You are likely to feel less secure once your retirement approaches. You will need to pay rent using your pension.
- There is a degree of insecurity that comes with renting. Your landlord won’t take over the house without a valid reason. Nevertheless, if they decide to sell the property, you have no choice but to move out.
How to decide whether to buy or rent
If you are still confused, take these factors into consideration:
- Buying might not work out well for everyone.
- You need to be financially stable to buy a home.
- Buying a house appears to be a costly venture at the onset, but its financial benefits surpass the initial cost in the long run.
- Owning a home attracts myriad responsibilities.
Your choice is likely to be influenced by three aspects – the location, the time and your financial position. You can find more about renting vs buying by clicking here