Renting versus Buying: What is Best For You
Renting versus buying. It’s an age old debate. In the UK, there is a significant amount of onus put onto property ownership. In Europe, the norm is to rent property. In the UK, however, many people feel the need to buy property. Others feel that this is an expensive pursuit. With mortgages being hard to obtain, it can be difficult for the average person in the UK to buy a home. With those that have plenty of cash to invest, homeownership can seem like a lucrative option.
Renting and buying both have positive and negative attributes. The decision, ultimately, is yours.
Let’s get to the showdown:
1. Option 1: Renting a Property
Renting is said to be ‘dead money.’ For many, this is true. But for others, they simply do not have the finances in place to buy a home. For individuals that want to assert their independence, renting is the only option.
There are many benefits to renting property. You don’t have to pay for the work yourself. If your boiler breaks, your landlord must pay. It can be a cost effective solution to living in the property. You are not responsible for the maintenance of the building. You simply pay your rent and bills and the rest is taken care of.
Some people enjoy renting because they like the freedom that is afforded to them. Social mobility allows people to move anywhere in the country. When you are buying a property, your options are somewhat limited. You have to wait for the sale of your home before you can move to pastures new. Leasing allows individuals to move quickly.
What is more, individuals who rent are not at the behest of the property market. To an extent, this means that renting can be cheaper. If you are tied into a contract, your rental price cannot be increased. Of course, this is subject to negotiation when the contract is up for renewal.
2. Option 2: Home Ownership
Home ownership is the Holy Grail for many. When you mortgage a property, your home is likely to increase in value. House prices are not as susceptible to market crashes. When it comes to your retirement, you can ensure that you have the coffers in the bank to support you during this time. You also have a choice of where you can put your roots. Homes to buy in the Shenfield area are increasingly popular with many people.
Many people are keen to invest their money and have a property to call their own. There are many benefits of homeownership. When paying a large sum of money every month for your home, many people like to see a return on investment. At the end of the mortgage term, the property is yours. Furthermore, when you do come to retire, you won’t have to pay out any further cash for your home. When your income is reduced, not having to pay rent is a bonus for many. Homeownership affords many people security. This cannot be sought from rental properties.