To Buy or To Rent Property: What would you do ?
In uncertain economic times, many people are considering their options more carefully when it comes to buying and renting property. Everybody wants their home to be a safe haven and there is a great deal of security on offer for those who are in a position to get a foot on the property ladder. However, there are also benefits to renting a property and sometimes buying comes with its own financial challenges.
We have put together some of the pros and cons of renting and buying in order to help you make an informed decision.
Renting a Property
Many younger people are struggling to get onto the property ladder with difficulties in obtaining a mortgage or saving enough money to put down a deposit. This means that they are choosing to rent for longer, and they are additionally seeing the benefits of renting.
For starters; a large number of people who rent look for flatshare opportunities in order to reduce costs. Whether you already have somebody to live with and you want to find a flat, or you are simply searching for a room, it is usually much cheaper to share with others in a two or three bedroom arrangement rather than a one bed. In addition if you have just moved to an area, this can be a great way to make friends and get to know others.
Frequently, flats and houses come fully furnished so you don’t have to pay out large sums of money on essentials such as beds or decoration. Additionally if you have any maintenance issues you can always call a landlord or letting agent to get them fixed, saving money on plumbers, electricians and other handymen.
Of course there are downsides to renting property as well. You cannot usually put your own stamp on a property and you may feel that you are paying out large sums each month rather than investing towards your own place.
Buying a Property
It may sometimes feel a long way off but buying a property has its advantages. Being a home owner gives you a definite sense of pride and when you have friends or family round you can show off your furnishings and décor whether your designs are minimalist, vintage, or traditional. If you have to replace something which you break, you don’t feel like you want to discover the cheapest item possible or that you are paying for something which you can’t take with you if you decide to move.
There has never been a better time to buy – many people have had their properties on the market for a long time and are keen to find a buyer meaning the cost is not so high. Prices are also in decline due to the economic climate and this will be a long-term investment.
Some of the disadvantages of buying at the moment include the difficulties of obtaining a mortgage and the fact that once you have property you must deal with any issues for example maintaining the interior and exterior in the event of damages. Owning property is a large responsibility and also a tie – bear in mind that it may not be as easy as it once was to sell if you need to move again at any stage.
Related posts:
- How to Sell to Rent Back Schemes
- Dealing With Rent and Service Charge Payments
- Is the Property Ladder Broken?
- Rent Guarantee Insurance for landlords
- Leasehold Property Basics – what you must know
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February 18th, 2012 at 2:50 am
An age old question which is much easier to answer you look at our continental neighbours who seem to shy away from buying.
That said, any self respecting skinflint would not want to put their money into some one else’s pockets every month.
March 1st, 2012 at 3:16 pm
Prices have never been better, it’s the right time to buy a property IF you have enough money saved to pay a deposit and your credit history is good, otherwise you will struggle to get in to the property ladder and will have to find alternative financing methods in order to buy. Renting has become the most popular option for young professionals and students who have found themselves struggling to keep up with the expensive rent rates
March 2nd, 2012 at 12:15 am
A well-structured and reasoned discussion here. Renting is probably the better option at the moment simply because of the added difficulty for most people in obtaining a mortgage in the current financial climate.
March 3rd, 2012 at 1:56 pm
It is a well balanced article. It really depends on what are your property goals. It is dependent on factors, notably if you have saved enough money to buy. However, whilst buyers may be priced out of where they want to live it is worth them casting the net wider. This may give them more opportunity to buy and get on the first rung of the ladder if that is their goal.
March 6th, 2012 at 2:08 pm
it’s the best time to buy a property if you have the money to pay the initial deposit. Why not buy to let? let the property pay itself.
May 16th, 2012 at 3:10 pm
Saving the equity whilst renting can be tough for first time buyers and means that affordable homes are out of reach for younger generations. This creates a generation of renters.