Rent or buy? – that is the question
Deciding whether to rent or buy can be difficult – both come with their own set of advantages and disadvantages.
Renting a House – Advantages of Renting
- Moving out of a rented home can often be quicker than selling a property
- You don’t have to worry about maintenance costs therefore, if there is a broken boiler or a leak in your bathroom, your landlord will need to fix it
- If you opted for a furnished rental, you won’t need to worry about buying and moving furniture in
- Renting a property is usually easier and quicker than buying a property
- You won’t need to worry about additional fees such as stamp duty and landlords and letting agents can no longer charge admin fees because of a law that was introduced in 2019
Renting a House – Disadvantages of Renting
- You might be expected to down four to six week deposit and your first month’s rent
- Your landlord may decide to increase your monthly rent when your lease is up for renewal
- Without your landlord’s permission, you won’t be able to decorate
- You won’t have any control of organising maintenance of the property so repairs may take longer than you would like
- If the landlord decides to sell the property, you will either have to move out or answer to a new landlord
- You will be paying rent to your landlord whereas mortgage payments go towards owning your own house.
Buying a House – Advantages of Owning a House
- Probably the biggest advantage is that it’s your property
- You will have a house which belongs to you so you won’t need permission to decorate or make any home improvement
- You will need to organise any repair work that needs doing which might be quicker than waiting for your landlord to sort
- Sometimes monthly mortgage repayments might be cheaper than rent payments (depending on the type of house and area)
- A house is one of the biggest investments that you’ll probably have and if house prices rise, you will benefit when it comes to selling.
Buying a House – Disadvantages of Owning a House
- Saving up for a deposit can be hard and can take a long time especially with house prices rising
- When you’re buying a house there are additional fees that you need to think about such as legal fees, stamp duty fees and mortgage broker fees.
- If there are any repairs, you will need to pay for them yourself
- If the housing market isn’t very active, you can be waiting weeks or months to sell your property