RENTING OR BUYING: Which should you do?
Summer is just around the corner and there’s only one question dominating the property debate as the warmer months come around – is renting or buying the smarter option in today’s property market?
Recent studies show there are now 10 million renters in Britain - a figure that is expected to rise. In fact, it is predicted that 25% of the UK population will be renting instead of buying by 2021, equating to over 16 million people. So is this the way forward?
Well, renting certainly has its benefits. There’s no risk of losing any money on the property if the value depreciates over time and any repairs/renovations are paid for by the landlord. When you throw in the reality that finding and renting a home is usually a far quicker and smoother process than buying, it’s not hard to see why a quarter of the population would want to utilise such a service.
However there are, of course, drawbacks with renting that may cause you to think twice! For starters, if you choose to rent your whole life instead of buying then you will be paying rent for your entire life, even after you retire!
You also have no control over any price increases to rent that may cause financial complications down the line.
So, is buying a home better? Well, there certainly is a strong case. Firstly, your monthly mortgage repayments will go towards buying your home, not straight to the landlord in rent.
You also fully own your home at the end of the mortgage’s term, ensuring a rent free and less stressful life from this point onwards! However, like renting, buying a home does have its drawbacks.
Mortgage fees and a deposit are an upfront cost that must be paid immediately – couple these with other immediate expenses such as survey, stamp duty, legal costs and climbing the first steps of the property ladder can become expensive rather quickly.
Monetary issues further down the line can also have serious consequences. If you fall behind on your mortgage repayments, they can cause serious financial implications.
Overall, there are benefits and drawbacks to both renting and buying – it is all about finding the right solution for you and your situation. Luckily for you, our expert team here at Mansons are Newcastle’s resident experts at finding the perfect home for our clients – contact us on 0191 209 2222 or pop into our Jesmond office for friendly, knowledgeable advice!