To buy or rent a property?
There is no definite answer as to whether you should buy or rent a property, and we are here to help you on both paths.
To help you decide, ask yourself these questions;
Can I afford to buy a house?
The upfront cost of buying a property is more expensive than renting. Buying a property comes with the cost of a deposit, stamp duty, a mortgage and the monthly repayments. You will also need a solicitor to help with the legal side of the purchase.
Saving for a deposit takes some dedication and commitment, so if you have your deposit already then that’s a huge achievement. If you haven’t, take a look at our guide on how to save money for a house deposit to get you started. You usually find that mortgage lenders ask for 5% to 20% deposits, so speak with a mortgage adviser or lender to work out how much you can afford, this will give you an indication on your price range for buying a property.
You still need a deposit to rent, but it is much cheaper, usually between 4 and 8 weeks rent upfront.
When owning your own home, you also have to pay for the maintenance and up-keep should the property need any work will add to your outgoings, but when you rent this responsibility usually falls on your landlord.
However buying a house could be cheaper in the long-term, as you have the constant monthly cost of renting towards a property that isn’t yours. With a mortgage you are buying the property for a set number of years and building equity.
What’s the long-term plan?
Renting is a great way of living somewhere for a shorter period of time, whether that’s for a temporary job or to stay local to family, without any additional costs. If you decide to move when you have bought a house you could face additional charges, such as an early repayment charge on your mortgage.
Do you have pets? Speak with the landlord or letting agency to read the terms of the tenancy, as you usually find with renting you are restricted to having no pets.
However, when you rent your landlord can set rules and restrict changes to the property, not giving you the flexibility to decorate and put your own stamp on the property. It’s also worth noting that when your tenancy comes up for renewal your landlord could increase the rent on the property.
How quickly do I need to move?
Renting is much quicker in terms of the process of getting you in to the property. You have the most flexibility with renting i.e. moving out, managing costs and you have the opportunity to test an area before committing to buying.
If you’re not in a rush to move, renting a property may be in your best interests as you have the opportunity to save for a house deposit whilst also planning for your long-term life goals.
There’s no right or wrong when it comes to renting or buying a property, just what’s right for you and your circumstances.
So if you’re asking yourself whether you should rent or buy, why don’t you start by looking at our properties available to let and for sale here?