Getting on the property ladder is not easy. Young people are struggling more than ever, and studies show that the average first time buyer in the UK is in their thirties. For many of those who are fresh out of education and don’t have a wealthy relative to rely on, home ownership may seem like an impossible dream.
The alternative then, is to rent a property. Many see renting as a stepping stone on the way to home ownership, and that’s not a bad move. It allows you to get used to your independence and having your own home, while providing a more affordable way of putting a roof over your head. Then once you are earning more money and ready to settle down you can start looking to buy.
Many people don’t go down this route, and continue to rent for the duration of their lives. For many this is a cost issue. There is nothing wrong with either option. Both renting and buying have their own pros and cons, so it’s important you have all the information before making your decision. To help you make up your mind, here is a quick comparison of renting and buying a home.
Why Buy a Home?
- Freedom: Although it may take some time to pay off your mortgage, buying a home means it is actually yours. You have complete freedom to do whatever you want, and don’t have to ask a landlord’s permission before drilling holes in the wall or rearranging your garden.
- Security: When you own a home, you aren’t subject to tenancy agreements and letting agency contracts. You can’t be made to move out at short notice or have your rent increased unexpectedly. You can feel secure in your own private piece of real estate.
- Cost Savings: It may sound strange to suggest that buying a home saves you money, but in the long term this is true. When renting, you are giving your money to a landlord, and at the end of your tenancy you have nothing to show for it. Yet with home ownership, you are paying for an enormously valuable asset that you actually own. If you decide to move home, you can probably sell your property for a lot more than you paid.
Why Rent a Home?
- Short Term Finances: Getting together a deposit for your home is difficult, and if you have limited funds or a bad credit score, you may not get the best deals from the mortgage brokers. Renting offers a more manageable situation, in which you just have to pay rent on a monthly basis.
- Convenience: When a homeowner has a problem that needs fixing, they either have to do it themselves or pay a professional to repair it. Yet as a tenant, this is the responsibility of your landlord or property management company. Your oven’s stopped working? Just let them know and they’ll send someone round as soon as possible at no cost to you.
- No Commitment: You can end your tenancy contract at any time. If you feel the urge to go travelling or pack up and move to a new city, it’s a lot easier to make the transition when you don’t have a house and a mortgage tying you down.
Hopefully this information has equipped you with the tools to decide whether buying or renting is right for you. There are no right or wrong answers, you just have to make the choice that is right for you.