Renting Vs. Buying - Which Is Right For You?
Renting and buying are two very different things, and often people find themselves deliberating over the two. Figuring out which one is right for you is imperative. Buying might be the best option for some, but that doesn’t mean it’s the right thing to do for everybody. Here we’ll take a look at the benefits and drawbacks of both so you know what’s best for you.
Buying A Home
Buying a house is a long term investment and should be looked at as such. It can work out cheaper than renting, however, you will need to be able to get a mortgage. You can try availing private money mortgage to help you with buying a home. You must be able to afford the monthly payments - bear in mind that just because you are told you can borrow X amount doesn’t mean you should borrow the full amount if it’s going to mean you will struggle. You’ll need to have a deposit, too. You may also need a guarantor who will agree to cover any mortgage payments that you miss (but it shouldn’t come to that). Benefits of buying include:
- You could make a profit if house prices rise
- You will own your home at the end of the mortgage term and live rent free
- Monthly repayments will go towards purchasing the home, not to a landlord
- You can live without needing your landlord’s permission for things, such as getting a pet and redecorating
- Buying can be cheaper sometimes
- You won’t have to suddenly move because your landlord wants to sell up
There are downsides to buying too. Getting a mortgage or private money loans can be a headache. There are upfront costs like mortgage fees and stamp duty, which can make it more expensive than renting. It can be complicated to sell the property if you get a joint mortgage and split up, too. You will also need to repair anything that goes wrong, which is a further expense on top of everything else. Plus, moving can take a lot longer if you decide you want to live elsewhere. Getting advice from a company like William Pitt or simply browsing the properties may be able to give you a better idea of whether buying is right for you. Try out real estate bridge loans in case you are having difficulty in buying your own home.
Renting A Home
Many people turn their noses up at renting as they believe it’s ‘wasted money’. However, there are lots of benefits:
- It’s a quicker process than buying
- Moving is no problem
- Your landlord pays for renovations and repairs
- You don’t risk money if property prices go down
- It is often cheaper than buying, and your payments will rarely change so you can budget.
- You may be able to rent out a bigger, nicer home than you could afford to buy.
Of course, the biggest downside for many people is that they will not own a home at the end of the day. You will pay rent for your whole life if you never buy a house, even after you retire. Plus, if your landlord decides to sell up, you will have to move out. Improving the property is pretty much a no-go situation too, as it only benefits the landlord.
It’s important to look at your personal circumstances to decide what to do. Do you earn enough to get a mortgage? Do you have a deposit? Who will you live with? How long will you want to live in this property? Asking yourself these questions will help you to figure out the right thing to do.
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