SLIDER

On Deciding Whether to Rent or Buy


I wanted to talk about something that’s been bothering me a lot at the moment, and it’s the dilemma of whether I would like to rent or buy a property. My mum always says, renting only pays another person’s mortgage, and if you can afford to pay your own, then you should do it. I’m actually in the position to buy my own place, and I’d love it, but am I ready for that commitment? I wanted to draw up a list of pros and cons for each option, in case anyone else has found themselves in a similar situation.

Renting


Pros


No commitment - when you rent, you’re not committing to the property. Usually, you’re paying for a fixed term tenancy, and you can walk away at the end of the contract without any fees (unless you’ve trashed the place…).



Fixed term - A fixed term is perfect if you’re always on the move. Once your tenancy is over, you can simply move on to the next place.



Landlord covers most issues on the property
- This means that if the boiler breaks, your washing machine overloads or if you experience the leak, the landlord is covered and will be able to deal with the issue for you.


Cons



Rent is usually more than a mortgage - Rent is, on average, almost £1k more expensive annually than a mortgage, which can actually hinder your savings if you’re looking to buy a house down the line.



You can’t make major changes to the property - This means you can’t change any aspect of the foundation. So no new kitchens, bathrooms, carpets etc. Some landlords may let you change the odd thing, but you will always need permission to change something in a rented property.



The overall costs are more, monthly than buying - Along with higher rental fees, you’ll also have to pay for your bills, council tax and gas. When you’re buying a house, you can actually shop around for the best deals, in rented accommodation, it’s mostly a flat rate.


Buying


Pros



You’re investing in yourself - any money that is paid towards your mortgage is ultimately money being spent on yourself. Down the line, you may be able to afford another property. When you sell your current one, this money will go towards the second property. When renting, your money is going into the pocket of your landlord.



You enter the property ladder
- this is the first step to owning property. Down the line, this can mean financial security and the option to live in larger properties if your current home gains value.


Cons



Any issues on the property are yours - This means that no landlord will be able to foot the bill for you. To save any issues like this cropping up, the easiest solution is to save.



Extra costs include insurance
- When renting, your landlord will have insurance to cover any damage. When you own your own place, you will need to shop around for insurance to cover any damaged or stolen property.


No matter what you choose, there will always be a mixture of pros and cons on each side. You’ll still have to get a removal company, such as Mr Shifter Removals London to move everything. You’ll still have to save money for new furniture and items for the property, and you’ll still need to pay those bills. It’s not an easy decision to make, and for the most part it’s all about deciding whether you can handle the commitment of buying your own place. Personally, I think I’d want to drive and get that out of the way before I commit to buying my first place.


Xo

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