Whether renting or buying is next step, it’s important to understand the difference and know which path is the right one for you. Knowing which will suit both financial, personal and lifestyle needs. It is vital to ensure you don’t run into any financial difficulty down the line.
There are many differences that make purchasing your own house and renting very different, although meeting with a mortgage advisor or the bank will be able to highlight what financial position you are in and what you can and cannot afford, it’s always good to have a clear understanding to begin with.
For some it is not about what they can and cannot afford, just because someone may be able to afford a deposit on a house and manage their mortgage repayments each month, it doesn’t mean that this is necessarily what they are looking for.
Let’s start with buying
Something that makes buying a home most desirable is having the ability to be able to design, refurbish and make it your own without any restrictions. Unfortunately, when renting a home, you often don’t have the freedom to decorate and make permanent changes although you live in it, it’s still technically owned by someone else.
Buying a home can come with great financial benefits and can be a good investment when you take certain factors into consideration such as location, the economy, and property maintenance. In most cases means that you will build equity on any property you buy, although like anything, it can’t be guaranteed.
The security of owning your own home is reassuring, but sometimes the cons of renting can out way some of the pros, when you buy your own home, you have no worries about that home being in the hands of someone else.
When buying a new home, you have the initial payment which can sometimes be quite large, however, the advantage of that is your monthly mortgage payments can be highly cheaper than renting. That large amount of money for your deposit can be quite difficult to achieve if not over a long period of time, so this is where a lot of the appeal of renting comes from.
Renting comes with less financial stress, although you have a standing monthly payment, like a mortgage, it doesn’t involve any down payment or a large sum of money to be able to rent a home. This allows you to rent in an area you maybe wouldn’t necessarily be able to buy in.
The process of renting a home is quicker than buying, when buying a home, the process is lengthy and if you need a quick fix or solution to your current living situation renting is a great option and route to go down, there are thousands of properties on the market available to rent, so options aren’t limited.
The disadvantages of renting a home are that it will give you less freedom as you won’t ever own that home meaning you can’t decorate and make changes to the property. It’s important to note that if the value of that property increases over time you won’t see the benefits, however, it has the advantage of knowing that if something goes wrong you aren’t the one liable, and any maintenance or repairs will be left to your landlord to manage.