Should I Buy or Rent?

The big question…

Working in sales and lettings I come across this question often so I thought I would put together a few points that can hopefully help you with your decision.

Pros of Buying

• You’re investing in your future
• You have the freedom and control over your own home
• Discipline and experience
• Community

There are a number of pros and cons when it comes to owning your own house, and it is very important to look at your options. One of the biggest benefits of owning your own home is that once you’ve paid off your mortgage, you will own that property in FULL and you can use it as an investment piece.

Your monthly repayments aren’t going to a landlord and creating ‘dead money’ for you. As it is your own home you also have the freedom and control to make renovations without having to ask a landlord. Even though mortgage payments may be your biggest monthly payments, eventually this valuable asset that you have invested in can be passed down to your children.

Cons of Buying

Whilst owning your home can be a great option, if you’re living with someone and it doesn’t work out then knowing what to do with the property can be difficult. In addition to this, if you lose your job you have to be prepared for your mortgage repayments and if the interest rate rises, your monthly payments will go up. As a home owner you will also need to be sure you can afford maintenance costs such as fixing boilers and any electrical faults.

Owning a home is a huge commitment and it is also important to note that it is not always easy to sell your home and depends on the market. Likewise, if the value of your property falls then you may be unable to sell it if you owe more to your mortgage lender than your house is worth.

All of these financial burdens need to be taken into consideration because if you overstretch yourself then you have to remember that you might not have money for meals out and leisure activities.

Pros of Renting

• Flexibility
• Free from financial responsibility
• No maintenance costs

When you own a home, you have less flexibility than you do with renting. For example, selling and moving to another location is more expensive, you will also have legal fees. If you often move around for work or want the option of dropping everything to go travelling then renting is probably your best option.

Renting allows you to choose where you live and you can change around and move as much as you like depending on your tenancy. You will have to pay your rent, but you won’t be tied into monthly repayments on a bigger loan. As a tenant it is the responsibility of the landlord to make sure the property is maintained, up to scratch and decorated nicely.

Cons of Renting

The phrase ‘money down the drain’ is often thrown around in the renting sector. Rent payments are high and at the end of it, you don’t have anything to show for your financial payments.

Ultimately your landlord is in control and you don’t have the freedom like you would if the home was your own. The relationship between you and your landlord can also be very difficult to juggle.

It’s your decision!

There are a number of pros and cons when it comes to buying or renting and you need to make the decision based on you and you only. The first step to buying a property is deciding whether you can afford it. As well as the house itself, you will also have to pay the deposit, survey cost, stamp duty, removal costs, legal costs and your monthly bills.  Then compare this to a monthly renting cost and you’ll have your answer.

However if you’ve got your heart set on buying then why not set up a savings plan? Alternatively the government have set up a number of Help To Buy schemes, which are worth looking into. If you would like to speak to an expert in either sales or lettings, please get in touch today with our team!