When it comes to look for a new place to live – whether it’s in your home town or in a completely different country or city, there’s probably one big question you’re asking yourself right now, and that’s whether or not to buy a place or rent one.
People will often have quite strong opinions on this matter – some people, for example will be completely against renting and would never consider anything other than buying a place, whilst others are on the opposite end of the scale and would only ever consider living in a place that they rent because they’re just not down for the financial commitment that buying requires.
However, most people, and possibly you, are somewhere in the middle and know that there are pros and cons to each option and that there are various factors that will go into determining which option you go for depending on your lifestyle needs and current circumstances.
So, if you’re currently in this situation and just don’t know which option to go for, then in this post, we’ve listed a few pros and cons for each option to help you make your decision.
You will eventually own it
When you own your property, although you’re paying a mortgage each month, you’re technically investing in something that you’ll one day own outright, so this can feel better because you know you’ll get something for it in the future.
Can be used to leverage to a bigger property
Buying a house, for example, is a lot easier if you already own property, and once you’re on the property ladder, then it becomes easier to move up it whenever you want to buy something new and bigger.
It can be cheaper each month
Mortgage payments are typically cheaper than rent payments – although there are definitely exceptions to this.
It’s expensive upfront
Of course, the downside to buying is that you need a rather hefty deposit – typically a minimum of 10%, although this can be higher or lower depending on the location and other factors.
You’re responsible for everything
Unlike when renting where the landlord is responsible for repairing anything that goes wrong with the property, when you’re the owner, you’re liable for this, and some of these things may cost a lot of money that may cut into your savings.
You can be more flexible when moving
If you’re renting and you want to move somewhere else at short notice, then you’ll have more freedom to do this because you can simply give notice and hand back a set of keys, whereas when you own the place you have to either look at selling or find someone to rent it so that the mortgage is being paid.
Not as complicated or expensive upfront
Renting is still an expense, but a lot less of one than buying. When renting, you may find a furnished place where you can take over on their old charm furniture so you don’t have to buy stuff, and you only have to typically pay a month’s rent in advance plus a deposit which is also equal to a month of rent. Unlike when you have to fork out 10% of the property value when buying.