Buying and renting both have pros and cons. With the cost of living crisis, there is sadly no financially safe option, and the answer to whether it is better to buy or rent largely depends on your circumstances. Here we look at the question in more detail.
Investment vs Expense
When you get a mortgage, you are investing in a property. When you rent a home, you are paying money out that you will never see return. When you walk away from a rental, you have nothing tangible to show from it. However, it is easier to walk away from a rental as they are often short-term, whereas a mortgage is usually a long-term commitment (up to 25 years)
This is the main difference between the two options and often the deciding factor, but it is important to acknowledge that many people do not have a choice and will, therefore, only be left with the renting option.
Advantages of Renting Over a Mortgage
With more people being forced to rent, let’s look at some of the advantages of this option.
You can end the tenancy when you want to – this is within reason, of course. You will need to commit to a fixed term, but you can decide with the landlord whether this is 6, 12, 18 or 24 months. You have options if your financial circumstances change and you want or need to move out of the property. With a mortgage, if you cannot keep the payments up, you run the risk of losing your home.
Renting can be cheaper – this is not always the case now as demand is high and supply is low, but with interest rates on mortgages skyrocketing, you may find a better deal on the rental market. You also don’t incur service fees etc., when renting.
Unforeseen expenses are kept to a minimum when renting – if your boiler packs up or your roof leaks while you are renting, the landlord must deal with it (unless you have caused the damage). When you own your home, you will foot the bill for all expenses.
Fill a gap – renting may be the ideal solution if you are unsure of where you want to live long-term or if you are studying/working in an area on a short-term basis. It is also a great starting point for new couples who want to try out living together and perhaps save up for a wedding or mortgage in the future.
If you require help with house clearance due to hoarding, contact National Clearances on 0203 9859552.