It is an issue that seems to be an obsession in the UK, but less so across much if the world, especially other parts of Europe. But it is an issue that needs answering. The age-old dilemma of whether to rent or buy. We took a look.
Rent – The Advantages
It should be clear to all that while many turn their noses up at the idea of renting, there are clear advantages. The first is the flexibility it affords. It allows you to possess accommodation without the commitment that a mortgage demands. For those who are ensure of what the future holds, it can be invaluable. It suits those that may move around, or have irregular income, as so many do right now.
Nicer Place?
The fact is, renting may allow you to live in a higher standard of place than if you bought. I reside in one of the most expensive areas of Manchester. But i can only do so because i rent. I could not even get close to purchasing a property in this area. In fact i couldn’t afford to in the city’s cheapest area? It is cheaper to rent, on a monthly basis, unless you can pay a hefty deposit on a property.
Rent Or Buy? Fewer Costs
And one of the reasons it is cheaper, and perhaps less stressful too, is because you do not have to pay for everything that goes wrong. A faulty boiler does not have to cost you, as it is the responsibility of the landlord to have everything in working order.
Rent – The Disadvantages
There are clearly big disadvantages too to renting though. Firstly, it is considered dead money by many, as you do not get anything back more than a roof over your head. With a mortgage, you have an asset. You are paying towards owning something very expensive that can be sold or passed on in the future. Rent is not an investment. Your own home also provides security. When you rent, you are under someone else’s control. You rely on the whim of a landlord, who could evict you or sell your property at any time.
Other Cons
Rent is not always cheaper than a mortgage. Initial costs may be lower, but for those that have been on the ladder for a while, it is much cheaper than going out and renting a similar-sized property. And with your own house, it is yours to do with it what you desire. A renter cannot really decorate or renovate without the permission of the owner. There is also little incentive to improve the property, as you are not the one who benefits unless you know you can stay there for a long time.
Rent Or Buy? Buy: Pros
Owning a home offers security to those that have their own property. You make repayments, and it is safely yours. It is also a sound investment, as history has showed that the value of a property, even if you do nothing to it, is only likely to go up. And the more you pay off, the less it costs you to have it. Eventually hopefully you will not have any mortgage to pay off at all. Even before then, it may be cheaper than renting, with many more upsides.
Buy: Disadvantages
The main disadvantage is surely the commitment necessary to buy a home. It is a long-term commitment. You can move or sell of course, but even those two options are time-consuming and costly. You need to be sure about what lies ahead when buying a property. It is the biggest decision and purchase you will ever make. And initially at least, it is very expensive indeed. You need to save a deposit and be able to cover payments. Fail to pay rent and you may be evicted. Fail to make mortgage payments and you can lose a house you have plunged many thousands of pounds into. You may also make this commitment with someone else, and if life circumstances change, it can get messy.
Rent Or Buy? Also.
If you need to sell up then what you get for your house depends on the housing market. You are a slave to the market. After the crash of 2008, many people sold their homes for less than they paid for them and in some cases the mortgage owed was more than the value of the house. The national economy can determine how much you pay per month if you have a varied rate mortgage.
And remember, if something goes wrong with the house, it is up to you to fix it. No one else will do it for you! Any time you move, there will be costs. And stress too no doubt.
