Renting Vs. Buying: Which is Right for You?
For those who have no interest in settling down in one place or investing their money into real estate, renting is a far better option, but there are also a lot of benefits to owning a home. If you’re currently renting and thinking of where to go next or are an individual with buyer’s remorse and is starting to re-evaluate their homeowner position, this guide takes a look at both renting and buying a home to help you figure out which is right for you.
Renting – Perfect for those on the move a lot
Renting a place to live can be beneficial, particularly for those who aren’t ready to commit to one area. Some of these benefits include the reduced responsibility, as if anything goes wrong with the house or apartment, it’s up to the landlord to fix it and foot the bill, not you. There is also the added luxury of being able to move more freely when you’re renting a property. If you got a job offer that required you to relocate or decide you would prefer to live in a different part of town, it’s easier to not renew your lease and move on than it is putting a property on the market.
What risks do you face with renting?
While the perks to renting a property can be great, there are still downsides to it. Firstly, if you’re unlucky and get a bad landlord, they could end up making your life very difficult, and getting stuck in a lease agreement for a year with them would be a nightmare.
Secondly, if your landlord decides to sell the apartment or house, you will have to find somewhere else to live. Thirdly, your landlord could decide to increase your rent, which would leave you either spending more each month or yet again, having to find somewhere else that you can afford.
Buying – Perfect for those that want to settle
Buying a house might seem out of reach for many people because it can take years to save for even a basic deposit. However, with a help to buy scheme available, it isn’t as hard to achieve as you might think. Some of the benefits of being a homeowner include being able to decorate your home however you please without worrying about losing a security deposit of having to ask for permission. Real estate is also one of the best investments to make, and making monthly mortgage payments could be cheaper than paying rent. In addition to this, as long as you keep up with your mortgage, you will never have to worry about being kicked you out of your home.
Are there risks to owning your home?
You will be responsible for seeing to any repair work that your property requires. If you did decide to sell, this process could take a lot of time, and in some cases, you might struggle to sell the property altogether, potentially losing money in the long run if you can’t sell for your asking price. However, this doesn’t happen to everyone. Some can make a very decent sum from renovating projects, adding extensions, and more to make back a good profit on their home.
While there are benefits and risks to both of these positions, there is no denying that owning a property offers more security than renting.