To Rent Or To Buy? Weighing Up The Pros And ConsTuesday, January 10, 2017
At the start of a brand new year, we tend to set ourselves targets. Perhaps you want to lose weight or get back into the gym. Maybe you’re keen to book that holiday of a lifetime you’ve been hankering after for months. Or maybe you want to move house. If you’re thinking about relocating to pastures new, you may be toying with the options of renting or buying. Here are some pros and cons to help you decide.
Buying a House: The Ups and the Downs
Buying a house is a major achievement, and something many of us aspire to tick off our bucket list. Unfortunately, it’s not always easy to get on the property ladder, especially in this day and age. It can be tricky to save for a deposit, and it’s more difficult to get a mortgage without substantial savings. If you can afford to buy, property is often a worthwhile investment. In many cases, you’ll also be paying less for your mortgage than you would be if you were renting. When you buy, you have a tangible asset, and this can help you make your way up the property ladder. You also have free reign to do what you want to the house. One downside to consider is that you’ll be liable for the cost of anything that goes wrong. If the boiler breaks, for example, there’s no letting agent to call or landlord to pay for repairs. Being a homeowner can often be a costly business. If you’re thinking of buying, it’s essential to get expert advice from a company like Mortgage Solutions. Go through the sums, and work out if it makes sense for you to buy at this time in your life. Set a budget, and see what’s out there. You may find something perfect, or you may decide that you’re better off waiting a while.
The Pros and Cons of Renting
Many of us think of owning a home as a rite of passage. However, renting has become increasingly popular. When you’re renting, you have a roof over your head without having to worry about the costs of maintaining the home. If you need a new washing machine or the roof is leaking, for example, the subsequent costs are probably going to be covered by your landlord or landlady. Sometimes, renting can also make sense if you don’t have firm plans to stay in the same area for a long period of time. If you’re studying or you want to travel, it’s probably wise not to commit to years of mortgage payments. Renting can limit your options in terms of what you can do to the decor or appearance of the property. It can also be seen as a waste of money, as you’re not putting money into an investment. You may also be paying out more each month than you would if you had a mortgage.
Both renting and buying have their advantages and disadvantages. Sometimes, one is much more appealing than another. If you’re not sure whether to rent or purchase your own property, weigh up these pros and cons, and have a think about your finances, your situation, and your lifestyle.