Five Great Reasons to Rent a Property Instead of Buying
The UK has something of an obsession with homeownership, but is it really the best option for everyone?
Of course, there are obvious benefits to buying a home, like owning the property when you have finished paying off the mortgage, but there are also lots of benefits to renting too, which many people aren’t even considering in their longing to own bricks and mortar.
Some people also find a stigma attached to renting in Britain, which just isn’t present in many other European countries. France and Germany, for example, have much lower homeownership rates, and there is no shame in being a cradle to grave renter. In fact, in big cities, renting a property far outweighs ownership.
So when trying to decide between climbing onto the property ladder, or if a tenant is feeling like they’re failing by not having signed up for their first mortgage yet, here are five ways renting makes an excellent choice.
While selling your home is usually an option, for some people in the early years of their first mortgage, or if they have ended up in a negative equity situation, for example, selling up may not be possible. Deciding to rent a property allows you to travel from place to place more eaisly.
Even if selling is a possibility, it’s a costly and lengthy process and not a decision to be taken lightly.
Renters, on the other hand, have much more freedom and, as long as they have fulfilled their contract length, are free to up sticks for new job opportunities, to reduce the miles of a long-distance relationship, to make a change of lifestyle or for any other reason.
Perhaps you know where you would ultimately like to settle down, but you want to try out lots of different towns and cities beforehand – renting offers that flexibility.
There are a variety of rental contract options to go for, so seek expert advice from the likes of Hopewell letting agents who offer short, medium, and long term lets, allowing freedom to move around and take advantage of work and other opportunities wherever they arise.
When looking to buy a home, your options on where you are able to live suddenly start to narrow. What you earn and what you already pay out is put under great scrutiny, and there are strict criteria mortgage lenders apply when calculating how much you are permitted to borrow.
This, along with what you see your long-term plans to be, massively reduces your options on the locations and properties you can consider.
With renting, you have a much broader choice – as long as the rent is affordable to you, then there is little to hold you back from your choice of property.
For example, if you want to live in a highly desirable area, you can opt for a studio flat and achieve that goal. It doesn’t matter that one day you hope to raise a family so will need more space, when the time comes you can very easily move house.
One of the biggest bonuses to renting a property instead of buying one is when something goes wrong with your home; it is generally someone else’s responsibility to put it right. For example, the cost of repairs such as a burst water pipe, boiler breakdown, or structural upkeep are not something a renter needs to concern themselves with, a simple phone call to the landlord or letting agent and the problem is out of your hands.
It’s pretty obvious that a mortgage will saddle you with a fair amount of debt, and while the commitment to paying rent is no less pressing, having to make sure you have the money to cover a mortgage, especially when the amount you pay every month can fluctuate according to interest rates, might be a responsibility you’re just not ready for.
More Financial Options
Many people fall into the trap of thinking the only way to get a good return on your money is by buying property.
There’s no question that buying a home can get you a good return on your investment, but other options can equal or even better that return.
If you have saved up your deposit but feel that now is not the ideal time to buy a home, investing that cash in stocks and shares instead could be a better option.
Between 1900 and 2016, it is suggested by the Credit Suisse Global Investment Returns Yearbook that the stock market returned 5.1% per year, so with that in mind, there’s certainly no need to rush into the property market before you’re ready.