It is often said that buying a house is better than renting, and getting onto the property ladder is seen as something everyone should strive for. But, although there are several benefits associated with investing in your own property, for many people these may actually be outweighed by the disadvantages. When starting on your property journey, it is important to think about the right path for your exact requirements, and what is best for you.
Is buying a property best for you?
The benefits of buying a home are already fairly well known; if you can afford a deposit, moving fees such as stamp duty and tax, and monthly mortgage payments, buying your own house can be an incredibly worthwhile investment, especially if house prices continue to rise.
If you are planning on staying in the same area for a long time, due to job commitments or children’s schooling, it makes sense to set down your roots with your own property. While the initial costs may be far greater than those associated with renting, if you live in the house for long enough to pay off your mortgage in full, you will then be able to live rent-free, potentially making it better value in the long run. Alternatively, if you decided to sell up in 10- or 20-years’ time, an increase in house prices could lead to you making a profit.
Buying a property is also ideal for growing families, and it can make great financial sense to purchase a house you can grow into. If you can afford to invest in a property that is larger than you need right now, but will be perfect for your family in a few years, you’ll eventually save time and money in moving costs when you don’t have to move again to accommodate everyone. By owning your home, you’ll also be free to renovate and redecorate as you wish and make changes to the property to ensure it continues to work for your changing needs.
Is renting a property best for you?
Although you are not making an investment in the same way you do when buying, renting should not be seen as throwing money away as it so often is. The renting process is often a lot quicker than buying, with fewer risks and a lower chance of things falling through, so if you need to move fast renting could help make this happen.
If you do not have a stable job or source of income, because you are in a fixed-term contract or you often have to move work locations for example, the flexibility that is offered with renting could be ideal for you. If you only sign a yearlong tenancy contract you will have no duty to stay any longer and will therefore not have to make any unwanted long-term commitments in other aspects of your life. Similarly, if you want to live with a group of friends or a partner, but don’t want to make such a large financial commitment together as buying a house, by renting you can have all the perks of living together without the obligation.
Finally, renting can be an ideal situation for young people who are moving away from their family home for the first time. Renting a property gives you all the independence of buying as well as the accountability of ensuring your rent is paid on time every month, however, you will not be responsible for any issues with the property (that weren’t your fault) and the subsequent costs of repair. In some properties, you might not even have to worry about budgeting for bills each month as they may already be included in the cost of your rent.
At Simpson and Partners, we have been helping people throughout Kettering and the surrounding area buy and rent homes for over 20 years. If you are wanting to move on, and are looking for your next property, get in touch to discuss your requirements with a member of our friendly team, or take a look at the houses we have on offer both to buy and rent.