Buying vs Renting In The UK
Buying a home, whether it is a house or a flat is easily one of the biggest purchases you will make throughout your life. But, with that being said, the price can be very daunting. So, some people prefer to find the perfect home and rent it.
The financial decision is not only one of the most expensive purchases, but also one of your most important. So, you need to ensure you get it right.
Which is better for you, to rent or to buy? Keep on reading to find details on buying vs renting.
Why do people buy homes?
Despite being a place to live, people tend to buy homes for multiple reasons. One of the most expected reasons is for the pride of ownership. As we grow up in a home, the majority of us see ourselves moving out of the family home and into our own. Therefore, most people will see it as an achievement which is waiting to be unlocked.
Another reason people tend to buy a home instead of renting a home is due to the control that it gives you. When you are buying your own home you can make as many different improvements to it as you like. Just make sure that you do not overspend and end up in some sort of debt. After buying or improving a house, you do not want to find yourself in a shortage of money meaning you may have to turn to a loan for help. But, if you do, here at BingoLoans we can offer you a loan for up to 12 months, find out more here.
Benefits of buying a home
- More control – You can make changes without having to ask a landlord.
- Once you’ve paid off your mortgage, your home will be yours and you won’t have to worry about paying for somewhere to live.
- If your home increases in value, you will receive the extra money when you come to sell the property. This could be used to buy somewhere bigger or nicer if necessary.
Downsides of buying a home
- The UK’s average house prices are rising meaning it is more difficult for buyers to get a foot on into the door of their first home. As the amounts begin to rise, it is harder for those trying to buy a home due to lower wages.
- Having to raise a deposit. currently mortgage lenders are offering upto 90% mortgages, but even that equates to £25k for a £250k house!
- There are additional costs involved including things like mortgage application fees and stamp duty.
- Takes time and effort.
The demand for renting a home is always growing and growing as more millennials are choosing to rent a home over buying one, but why? Just like those who purchase a house, there is no set age, gender or even social class which specifically rents houses, it is entirely up to the individual.
Why do people rent homes?
People tend to rent homes as it is more affordable in the short term. As you can imagine with the prices of houses in comparison to wages, a lot of people around the UK cannot afford a deposit. As well as this, people rent homes for flexibility. Some people do not like to be tied down to one place, especially if they spend a lot of time moving around and relocating.
Benefits of renting a home
- Fixed costs every week or month.
- Any maintenance costs are covered by the landlord meaning you do not have to necessarily pay unless specified.
- Cheaper than buying a property
Downsides of renting a home
- Cannot make changes to the property without the approval and consent of the landlord.
- Rent prices are getting higher due to higher demand, so, would it be a better option to purchase a property?
- Little stability, you never know if your landlord will sell the house or not.
Things to consider overall
Whether you are buying or renting, there are multiple things you should consider. But, one of the most, if not the most important factors is the cost. Before you make any quick deals or decisions, you need to consider whether or not you can afford it. Can you afford to get together a deposit? Can you afford to pay rent? These are all aspects which are essential before you can make your first move when finding a home. To find out more information on buying vs renting, you could visit the Money Advice Service.