Research has suggested that 86% of people in Britain want to own their own home, but many still choose to rent nonetheless. If you are considering whether to own or rent, it’s important to weigh up the pros and cons of both to give a really good sense of which is more suited to you and your situation. Luckily, we have laid them out here for you, so read on to find out more about whether you should own or rent!
Many people perceive renting to be a way of throwing money away every month, and while you aren’t building any equity with monthly payments of rent, not all of the entirety of costs involved in homeownership go towards equity building. However, renting a property gives you the sort of flexibility that allows you to quickly relocate or move around easily for work. Finding a home to rent is usually a quicker process than choosing to buy as well, and if the property requires renovations or repairs, you won’t need to fork out any extra cash for this. Renting also opens up the opportunities for living in a bigger property or more sophisticated area than if you were buying, as it may be more affordable in this way.
However, if you choose to rent, you may face the prospect of doing so for the rest of your life. This is because you will be making large payments sent to your landlord every month instead of putting some away for owning a home. Coupling this with the fact it is becoming more expensive to rent does not bode well, and you won’t reap the benefits from any property value increases that may arise as a result of economic housing market conditions.
If your landlord chooses to increase your rent you could also be in real trouble, and this is not an uncommon tactic since economic conditions can cause people to demand more money.
Homeownership brings with it a sense of ownership pride, stability, and creative freedom in choosing the aesthetic look and feel you want your property to have. The best part is that your series of monthly consecutive repayments will go towards buying your property, and not into an exterior landlord’s bank account. If house prices rise you could make a substantial profit, and any changes or maintenance you make to the property will only increase the overall value. Many people like the idea that they have an asset they can pass on after they’re gone too, since you will fully own your home at the end of the mortgage’s term and won’t have to make any further payments.
Remember though that if you separate from your partner or get a joint mortgage, it can get very complicated when it comes to selling the property. Interest rates dependent on the economic conditions of the housing market could also increase the monthly repayments you have to make (although getting a fixed rate mortgage helps). You also have to consider that if your finances become challenged, making the move to a cheaper property may take time.
If you’re a first-time buyer then, you might find it easier to rent. But looking long term, owning is the better option. If you need a property as soon as possible, renting is likely to be better for you. You won’t need to pay a massive deposit when you choose to rent as you might do when buying. Take a careful look at your situation and available finances and go from there.
Farr and Farr Property Services are Gloucester’s longest established independent estate agency with five branches in and around the Gloucester area. We are a modern estate agency with traditional values and help you with buying, selling and renting properties.
If you’d like some more information, take a look at our website www.farrandfarr.co.uk or take a look at our local branches here.