13 Sep Which is better? Renting or buying a home?
When you move into your first home, you have two choices ahead of you. Do you rent or do you buy? Both of them have their own benefits and drawbacks and for both, you will end up with a place to call your own; if only to borrow from a landlord.
There are people who think that renting a home is better than buying a home, and the same the other way. So, in order to help you to make the right choice, we have put together our guide to the main points to consider when renting or buying a home.
The pros of renting
When you compare the cost of monthly rent payments and monthly mortgage payments you will see that rental payments are usually lower than mortgage payments. Not only this, but the monthly payments that you make will usually include things such as utilities and bills (such as water and electricity).
Renting is also a more flexible option, particularly if you are looking for a short term option as a stop-gap or to try out living together. There is also a chance to save money on things such as property maintenance, as your landlord will cover most of these costs.
The pros of buying
When you buy a property, you buy it, sure, you will be paying off a mortgage every month, but in essence, the house is something that you own. It is an investment for your future and it is going to give you the stability that you may be looking for.
Buying a house also opens up the chance to access the equity of that property. So, if you do decide to sell up, then you can put the additional money towards a new property.
You will also have the freedom to do whatever you want in your home, this includes more heavy duty work that will change the interior of the property. Whilst the mortgage payments may be more expensive than renting, it will be cheaper for you in the long run.
The cons of renting
Many people see renting a property as dead money. This is because you are paying out to effectively not have anything by the end of that. There is nothing to gain from renting that particular property and when you move on, you won’t have any equity for your next property.
It can also be hard to save up to buy a property when you are renting, which can leave you stuck and unable to buy a new house. You are also incredibly limited when you want to make any interior design changes, as everything will need to go through the landlord.
The cons of buying
Buying a home can be expensive and it is a long-term commitment to make. You are going to need to save up for a property and you are also going to need to take into account any fees that you need to pay during the process, as well as work that needs to be carried out on the property too.
There also isn’t a lot of flexibility in buying a home, as you are going to be tied into a mortgage agreement, which is not always easy to get out of.
So, there you have it, our guide to the pros and cons of renting/buying. Think about which is going to be right for you and your needs. Both now and in the future.