Buy or rent? It’s a common dilemma in this generation. Making the decision to get on the property ladder requires forward-planning and careful money management as it is one of the biggest financial decisions you’re likely to ever make. But it can also have many benefits. The importance of this decision can weigh heavily on some, which is why it’s vital to ignore what’s expected of you and to make a decision that’s right for you. Let’s take a look at the pros of buying and renting, and hopefully, bring you a step closer to an answer for whether you should buy or rent.
The Pros of Buying
Buying property as an attractive option for many as once your mortgage is paid off, it’s an asset that’s completely yours and you don’t have to worry about paying for somewhere to live. Also, you have the power to increase the value of the property when you spend money on improving it (which is not possible when renting) and the equity could eventually go towards buying a bigger home or fund your retirement.
If you’re someone who plans for the long-term, buying is a great option on paper. However, it does require careful, long-term financial planning to save for the deposit and to make sure you can afford the monthly repayments. Although buying does offer some security, it’s not the ideal option for someone reluctant to settle in one place. Depending on what the market is like, having to sell a property before moving could significantly delay your plans.
The Pros of Renting
Research from 2018 has revealed that the number of people moving homes is at its highest level since the finance crash, with over 370,300 households on the move. If you enjoy having flexibility in your life, renting is probably the sensible option for you. You’re not tied down to one place and if you want to move for your career of if you fancy a new adventure, there’s nothing holding you back.
Renting from a company like Global Guardians can also make sense financially. It allows you to live in an area that you perhaps couldn’t afford to buy in. You don’t have to worry about unexpected costs as maintenance is the responsibility of your landlord. Also, your rent is fixed so you can plan your finances better, whereas homeowners must prepare for higher repayments when there’s a rise in mortgage rates.
Making The Right Choice for You
Ultimately, deciding whether you want to rent or buy depends on your goals and whether youwant to make a big commitment like buying a property. If your career is your priority and you’re willing to relocate for your dream job, then renting is for you. However, if you‘re planning long-term and want to settle in one place, buying may be the best option financially. Both options have many pros, but it’s about making the right choice for you.