Buy or Rent? Your biggest Financial Decision
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For many people, it comes to the point in your life when it’s time to move into your own home. For most this is a one of the biggest financial decisions of our lives so it’s important to weight up the options and see what’s right for you.
Benefits of Buying
Buying a home can come with many benefits, one of the most obvious being once you have paid off your mortgage, you will own the house. It’s important to consider the benefits of either buying or renting a property before you make that crucial decision.
Other benefits of buying property include:
- No landlord who could make you move
- Buying is cheaper than renting (in the long run)
- You could make a profit on your home if house prices increase and you decide to sell.
- You can renovate to increase the properties value
If you want to figure out how much mortgage you can afford to pay, check out our handy Mortgage Calculator Here>>
Benefits of Renting
Although there are certainly many benefits buying a home, there are positives of renting too. If you don’t like staying in one place too long it can be a lot quicker to move home when you need to.
Other benefits of renting property include:
- Cost of rent can work out a lot cheaper to pay per month than mortgage payments.
- More cash to play with in the short term on holidays or a new car… For example.
- More freedom – If you rent a property and there is a problem, it’s your landlords legal responsibility to fix it. Whereas if you buy a property, the responsibilities are your own.
- You could rent a bigger home in a nicer area than you could afford to buy.
So Shall I Buy or Rent?
I depends on your situation but if you can save up enough money and want to work your way up the property ladder, earning more money in the future then buying a home could be for you. If on the other hand you want more money to spend on things such as holidays or a new car with more freedom, renting could be for you.