Buying your own property is probably one of the biggest financial decisions you’ll ever have to make – so it is not one that should be done lightly! We’re going to explore whether purchasing a house is the correct decision for you right now, or whether you are better off renting…
- Once you’ve paid off your mortgage the house will belong to you, which will mean you’ll no longer have monthly repayments to make.
- You can freely spend money on improving your property to increase the value of it, without having to ask the permission of a landlord.
- In some cases it may be that it is cheaper to get a mortgage than to rent – this is why it is important to do your research on the market!
- If and when you decide to sell your home there is potential for you to earn a profit, as its value increases over time.
- Having your own property brings with it the feeling of stability and pride of ownership, which you may not feel if renting.
- Becoming a homeowner brings a huge financial responsibility, which may be something you are not ready to commit to.
- There are many additional costs to consider, such as taxes, insurance and maintenance, which you, as the as a homeowner, are responsible for keeping up with.
- If you own a property, you are less mobile and flexible when it comes to relocating – in most cases, being able to buy a new home depends wholly on the sale of your current one.
- If you do chose to sell, you may be at a risk of not making a profit on your property, which can be caused by uncontrollable factors like recessions, high interest rates, or a location becoming less desirable.
- You could potentially stretch yourself financially to get a mortgage, and as a result, other aspects of your life can be affected, such as being able to afford holidays and socialising.
- When renting you can often afford to live in an area, which you might not have financial capacity to buy in.
- Renting doesn’t usually requires no long term commitment, so is perfect for those of you who don’t intend on staying in the same place for a long time.
- There is no added stress of finding a buyer to purchase your property, meaning you have more flexibility around when you can move.
- The only insurance that is required is to cover the contents of the property – the landlord is responsible for paying any additional fees.
- You cannot freely renovate or make changes to the property, without seeking the permission of the landlord first.
- There are elements of uncertainty when renting, because there is no guarantee that a lease will be renewed once it has expired, meaning you may have to move to a new property sooner than you’d like.
- Renting offers no potential wealth creation or return on investment, because the property doesn’t belong to you.
- More often than not, there is a third party rental agent who will act as a liaison between yourself and the landlord, meaning issues can often take longer to resolve.
- As a tenant, you will have no control over annual rental fluctuations.
We hope that this checklist will help you decide whether buying or renting is the best option for you! Remember, whatever the right decision is for you now could change in the future – you may not be in a position to buy a house now, but in a few years’ time that could change.
A parting tip would be to take your time when thinking about buying or renting, and source some advice from an expert! We would be happy to provide you with this, or if you have already made your decision, we can assist in your next steps of looking for a property.
Give us a call on 01484 682999 or pop into our office and chat to one of our friendly sales team!