When the time comes to move out of your rental property, you may be asking yourself one thing. Is it better for me to carry on renting, or should I be looking to buy? It’s something a lot of people ask themselves, especially since one of the biggest dreams that individuals pursue is owning their own home. But for many, it’s a distant dream, with thousands of people feeling stuck in a rental rut because they can’t afford to buy. But it’s not all doom and gloom! So today, we wanted to go over some of the pros and cons of renting your home.
The Pros Of Renting
Your Landlord Is Liable For Repairs: While you are responsible for keeping the property in good order, it’s your landlord who is liable for repairs to the property as well as general maintenance. This means that the structure of the property, along with fixtures like basins, sinks, baths and ovens are all covered by their maintenance contracts. You will need contents insurance to protect your possessions, but overall the very expensive bits of owning and maintaining a home are covered by someone else.
You Can Live Somewhere You Couldn’t Afford To Buy: one of the biggest advantages to renting is the ability to live in a house or an area that you might not be able to afford otherwise. This is particularly true in higher cost areas like London, where the average house is typically way more than most people can afford to buy.
It’s Much Easier And Simpler To Move: Moving on to a new home is a much easier process for tenants than it is for homeowners. There is no mortgage to worry about, no chain and no hassle of selling your property before you can find somewhere else. All you need to do is give your landlord the required amount of notice that you want to leave, no strings attached.
Flexibility: If your job means you need to relocate a lot, or you just don’t like the idea of staying in one place and being pinned down, then renting can be perfect for you. It gives you the flexibility to move around frequently, and much more easily than if you owned your property.
Of course, like anything in life, there are some downsides to renting instead of buying as well. And in the interests of being fair…
The Cons Of Renting
It Can Cost More To Rent Than To Buy: Low interest rates often mean that mortgages are relatively cheap, so if you’re able to get a mortgage you may well end up paying less every year than you would if you were renting. For example, studies from Lloyds found that on average, first-time buyers were £865 a year better off owning their own home than renting one.
Your Costs Can Go Up: When it comes to costs, you’re at the mercy of your landlord. They set your rent, and so if you stay in one place long term you could end up paying more over the years as the prices rise. Some landlords might decide not to raise your rent, while others might, and you really have no control over that, which can make some people concerned.
You Have To Get Permission To Make Changes: What some see as one of the biggest cons of renting a property is that you will never be able to truly make it your own. Because you don’t own the property, you will need to get permission to make changes like painting the walls, putting up pictures or adding a family pet.
You Have Less Stability: If your landlord decides they want to sell up, then you’ll have to move. This means you won’t have as much security as someone who owns their home. While your landlord does have to give you plenty of written notice, it can still cause instability in the long term if you need to move. That’s it – the pros and cons of renting. Of course, depending on your financial position and where you are in your life, you may not be ready to buy – making renting the perfect option for you. Ultimately, no one can decide which is the better option for you – that’s something you have to work out for yourself. But if you need some help, we’re here. At Northwood we are always happy to give advice and support to would-be renters or buyers who aren’t sure which route is right for them. If this sounds like you, just get in touch with the team, and we’d be happy to have a chat.
