Both renting and buying have their own unique advantages. Renting, for example, allows you more expendable money in the short-term, whereas owning a property outright provides with a long-term sense of security.
Advantages of buying
- - When you buy a property, it is legally yours, giving you greater freedom in its use, without the restrictions of a landlord.
- - You gain creative control of the property and can alter it how you see fit – whether that be through changes to the décor or personalising its landscape.
- - You will have the option of buying to rent, which therefore enables you to generate income from renting out the property.
- Potential capital growth.
Disadvantages of buying
- - The additional costs that come with homeownership include deposit, survey fees, solicitors costs, stamp duty, insurance, maintenance and repairs, fluctuation in mortgage payments if on a variable rate.
- - You will run the risk of not making any profit through resale. This can be caused by external economic factors such as a recession or inflated interest rates.
- - You’ll likely become dependent on selling your home before being able to invest a new one.
Advantages of renting
- - Renting gives a tenant the opportunity to live in an area you would otherwise be unable to afford.
- - The only insurance you’ll have to cover is the contents of the home, while all maintenance work is the Homeowner’s responsibility.
- - After paying your rent, you may have the luxury of having additional money to spend elsewhere.
- Flexibility to move at the end of your tenancy.
Disadvantages of renting
- - You’ll be come bound by the rules of the lease agreement, impacting the way in which you live in a property.
- - You won’t be able to make changes to your temporary home without the consent of the Landlord.
- - There is no full guarantee that your lease will be renewed when the tenancy expires!