Today, a lot of us are unsure whether we should rent or buy our homes. There are millions of buyers and millions of homeowners, with each of us having our own opinions about what’s best, renting or buying. With that in mind, it can often be hard to find opinionated advice about either option, making working out which is the best option for you, somewhat tricky. The fact is that what is best for you depends on a range of factors, including your budget and personal circumstances, as well as your personal preference. So, with that in mind, below is a guide to renting vs. buying. Hopefully, this should help you to work out which is the best option for you.
What are the benefits of buying?
The first benefit of buying is that each month when you pay your monthly mortgage payment, you are buying a bit more of the property. Whereas when you rent, you are simply lining the landlord’s pockets. A lot of people worry that they can’t afford a mortgage, but as this house affordability calculator shows, most people will pay less for a mortgage each month than they are currently paying for rent. Meaning that a mortgage is an affordable option.
Another benefit of buying a property is that it’s your home, you own it, so you can decide what you do with it. You don’t need to ask for permission to redecorate. You don’t need to ask before getting a pet. You don’t need to worry about the rent going up. You own the property; it’s your home.
Then there’s the fact that a property is an investment. When you get older and need care, you can sell your home to pay for that care and downsize or move into assisted accommodation. You might not be worried about aging yet, but it’s something that is important to think about.
What are the reasons to rent?
One benefit of renting is that you are not responsible for dealing with any maintenance issues within the property, such as a broken boiler or old, dirty carpets, it’s down to the landlord. This means that you don’t need to worry about covering these costs.
Another benefit of choosing to rent instead of buying is that moving into rented accommodation is quicker and easier than moving into a property that you are buying. This is because it can take weeks or even months for the documents to be exchanged and the legal side of buying a property to be dealt with.
Then there’s the fact that you are able to rent a property even if you’ve got a low credit score. Whereas, being able to buy with a low credit score is much less likely. This is the number one reason that people don’t buy – because they have a low credit score.
There are pros and cons to both options, but ultimately whether you choose to rent or buy depends on a range of factors. These include your financial situation, your credit score, and what your personal preference is – some people prefer to buy while others prefer to rent.