As the saying goes “your home is your castle”, but does it make any difference if you rent or buy? It’s a decision that should be thought about carefully, the pros and cons are important for both.
Are you ready to settle down?
If you need to move around for work and have a professional career, then flexible living is the key. Renting is generally the best option especially when your job takes you to different areas of the country. Tenants can leave their homes within a few weeks or months without having to worry about it. Homeowners on the other hand, must go through the lengthy process of selling which can take time.
Buying a property certainly provides greater peace of mind rather than renting. You don’t have to worry about the landlord suddenly deciding to sell up leaving you in a dilemma of where you’re going to live. As long as you keep up with the mortgage payments, the property is yours, a valuable asset and a major investment.
What’s the cheapest option?
For many professionals, deciding whether to rent or buy often comes down to the cheapest option. A number of factors come into play here such as rent costs and house prices in your area. It’s also depends on the type of property you want to live in and where. Maybe you’re after a city centre location so it’s easy to get to and from work, or somewhere on the outskirts of town where you can commute every day.
Renting or buying a property will probably be one of the biggest financial decisions you’ll make, so it’s important to get it right. Either way it’s a big commitment. Can you really afford to buy? If you buy a home there are a number of extras to pay for like a deposit, a solicitor, survey cost, stamp duty and removal costs. When renting there is only an application fee, security deposit and usually one month’s rent in advance. The cheapest option therefore leans towards renting.
Have you done your research?
For anyone thinking about buying or renting their next property, there’s a wealth of information online. Find out what’s going on in the renting and buying property market. Check out useful online tools that allow you to research rental and house prices in your area or different parts of the UK, wherever your job takes you.
No-one really knows what’s going to happen to house prices or rents in the future. Browse house price indexes and let indexes to give you an idea of what to expect in terms of cost of buying versus renting. Recent statistics indicate that most young professionals prefer to rent. For them renting:-
- Provides flexibility
- Is less risky and less responsible
- Doesn’t come with the need to maintain a property
- Doesn’t involve the costs associated with buying, such as survey costs
- Is less hassle if you need to move at short notice, due to work
There are negatives and positives for both options. The best option for many professionals is to rent and maybe buy in the future.