Times are changing, more and more people are renting, instead of buying a home. However, many people still see renting as a waste of money. If you have parents that are homeowners and you are still young, they might encourage you to buy a house rather than renting it.
But which option is better? Why do some people choose to rent but some people choose to buy? In this article, we will dive into the pros and cons of buying a home vs renting…
Buying a home is always a stressful process, not only financially but also because of other problems that might occur in the future. There are a lot of decisions to make when buying a house.
There are lots of pros and cons to buying a house, however, it’s really down to your personal and financial situation to whether or not you are suited for buying.
You have to keep in mind that this is an investment, this is a home that you will be living in for years. So, the most important thing is to find the most suitable one for you and that should be your motivation. That is why buying can be a tough call; is a property purchase a part of your long terms plans?
It is no secret that owning a home takes out the surprise of your landlord wanting the property back (which they can do at any time whilst renting). If you own a house and can manage to keep up with your mortgage payments, no one can force you to leave the house. However, if you are a tenant, even though the landlord has to give you some kind of notice, if your landlord wants the house back from you, there is not much you can do.
As a tenant, if your landlord wants the home back, you have to leave. It can be very unfortunate if you have children in a local school or your work is nearby. It can also be bad for your family as a whole. That is why it’s always great to have the security of your own house.
Throughout time, the value of a house will always rise but you never know if a house market crash is around the corner, and it might be annoying to buy a house only to watch its value drop.
The worse thing that could happen is that you break up with your partner, or you have to stop working due to an illness or something else and have to sell the house and lose the money that you have put into it. That is why you always have to think about the future before rushing into something and investing.
Generally, mortgages are cheaper than renting. Plus rent payments may change over time with interest rates going up and down, and it’s unlikely for them to decrease. On the other hand, if you haven’t got a fixed-rate mortgage, it may be just like renting, your mortgage payments could change. Before you know it, you are in the same boat.
Usually, rent goes up every year, and it is highly unlikely for your landlord to lower it. Even in the middle of the pandemic, most of the landlords refused to lower it.
One of the main pros of renting is flexibility. For example, if you get a job offer that requires you to move or you want to Move Home in Coventry, you have to think twice as a homeowner. However, as a tenant, giving notice to your landlord is more than enough. Of course, as a homeowner, you can sell your home and buy a new one, but this is time-consuming and very expensive. And you have to make the decision whether it would be best to keep the house and rent it out or sell it. This is another dilemma that won’t cross your mind if you were renting.
All in all, if you believe that there are other places that you might want to live in the future, buying a house might not be the best option for you. Always think of buying a house as a long-term commitment.
Repairs are another positive if you are renting because if you are a tenant, your landlord is responsible for every major and sometimes minor repair. However, some landlords may take a lot of time to get around to these repairs, it’s annoying but they’ll sometimes do it on purpose. All you can do is keep trying to get a hold of them. Some may be good and responsive, it’s just down to luck. Some minor repairs may be up to you, but generally speaking, your landlord has to handle it.
When you are a homeowner, everything is up to you. Including the insurance of the property which will be a condition of any mortgage you take out.
Even though many people say owning a home is easy, it is not for everyone. There are many things you have to consider before actually making an investment like this. There is no harm in renting for a while if you made the decision to move in with your partner or have an unstable job that might require you to move somewhere else in the future.
Even though it’s more common for people to buy a house rather than renting, no matter what decision you make, you will have to pay your monthly payments. You just have to be aware of your current financial position at the point of application.
For further expert First Time Buyer Mortgage Advice in Coventry, make sure to get in touch and we can recommend you whether it may be better to rent or buy based on your financial circumstances.