For many people, homeownership is a milestone for them to reach at some point in their lifetime, but it is not the only housing solution available. Many people see renting as a temporary alternative while they are saving up for a deposit on their own house, with home owning always being the end goal, but it can also be a surprisingly practical long-term solution.
Financial
Although renting is often seen as cheaper than paying off a mortgage, it’s still worth having a look at the prices in your area for both rental and for-sale properties to get an idea of the local standards. Seeking financial advice and getting quotes on monthly mortgage repayment plans as well as standard rent rates will solidify an idea of what you can afford, and the comparability between the two costs may well surprise you.
That being said, buying is certainly more expensive upfront. With a typical 10% deposit, as well as surveys and solicitor fees, so there are a lot of initial costs to plan for which is why most people will rent property whilst gathering these funds. This also means that while renting, you can more reasonably afford to live in higher-value properties, whether that is down to area or the size and quality of the building itself.
Rental payments are also more predictable than a mortgage; you as the tenant pay the landlord the agreed-upon rent, and any unexpected maintenance costs such as new appliances or boiler repair are their responsibility to pay for and fix.
This is not the case when you buy a house. However, unlike renting, buying gives you something at the end of your investment. Once your mortgage is paid, aside from bills and maintenance, you no longer have to pay to live in the house, unlike rent which is a consistent expense for as long as you reside in the property. This means that in the long term, buying may be the most financially viable option.
Flexibility
Although buying a property may be a more secure long-term option, renting offers greater flexibility in both moving and living conditions. As the moving process is generally both cheaper and faster when renting, you can move both easily and quickly into a new property if your needs suddenly change. Renting can also allow you to sample several different property types and areas with greater ease.
The Personal Touch
Unlike rentals, where the décor typically fits a neutral colour scheme and renovations are the responsibility of the landlord, owning a house means you can decorate as you wish. This ability to make a house your own, whether that’s by paint colours or kitchen fittings, is often one of the biggest appeals of owning a house and having the freedom to do this is not something often granted in rentals. Landlords can also impose restrictions on pets.
Whether buying or renting, a lot comes down to individual budgets and circumstances. To find out more information about the pros and cons of buying and renting, contact Simpson and Weekley today. We have a fantastic selection of both homes to buy and homes to let in the Rushden and Wellingborough area, as well as an online form for all your enquiries. Our financial team are on-hand to answer your questions and help you work out which option is the best decision for you.