Rent Vs Buy Home : How to Make the Right Decision
If you rent, choosing whether or not to buy a home is potentially the most important choice you’ll ever make.
Many people’s decisions would be influenced by their financial situation. Average monthly rentals in most parts of the UK are higher than mortgage repayments, having your own home is a dream project for most of the people.
However, because property prices are so expensive in London, most people do not have a choice other than renting instead of buying.
Everyone’s situation is unique, so if you’re having trouble deciding, we hope that this post will assist you. If you are not sure whether to buy or rent house you should simply visit mortgage advisor in London, they can help you making decision with various mortgage deals.
We compare the benefits and drawbacks of buying vs. renting to help you make the right financial decision for you.
Pros and Cons of Renting a House:
For most people, renting is just a stopgap measure so they can afford to buy. Then there’s a lot more to that.
Pros of Renting a House:
Renting allows you to be more flexible. When you’re about to move, it’s far easier to terminate a rental deal than it is to sell a home.
Repairs are being paid for by the landlord. If there is a problem with the boiler? If there is dripping in the shower? These fixes are the landowner’s liability, not yours, while you are renting.
Reduced start-up costs, when you rent a house, you will be required to pay a security deposit, but there are no other expenses when you move home especially when the property is rented as fully furnished. On the other hand there are monthly premiums, legal and relocation payments, and repair/replacement costs to include before purchasing a home. It is better to discuss the process of buying a property with a mortgage broker.
Cons of Renting a House:
Your capital isn’t assisting you in accumulating wealth. The most significant distinction in the rent vs. purchase debate is money. If you pay £1,000 a month of rent for ten years, you can spend £120,000 and see no increase in your net worth. However, paying £1,000 a month on a mortgage for ten years will result in substantial savings in your home.
There are no advantages to having a good credit score. Your credit score increases if you have a mortgage and pay it on time every month. That isn’t something that can be accomplished by paying rent.
You won’t be able to make the space completely yours. There will be no removing dated tiles, fencing, or big remodelling schemes. You get just what you see.
Also Read: 5% Deposit Mortgage Scheme in the UK for First Time Buyers and Homeowners
Pros and Cons of Buying a Home:
Pros of Buying a Home:
Home prices are expected to grow by 17 % over the next decade, according to Good Move research. If you’re debating whether to rent or purchase as a long-term property, the decision is easy. Furthermore, each mortgage payment adds to your savings and raises your net worth.
You can expand the house and also renovate it because it is yours.
It gives you peace of mind to know that the land is yours. You won’t have to think about your lease being terminated or your annual rent costs rising abruptly. If you want to buy a new home with good deals you can always take advice from a mortgage advisor.
Cons of Buying a Home:
When it comes to renting vs. owning, buying will still be more expensive. A mortgage payment, surveys, Conveyancer and moving expenses can all add up to a lot of money. You’ll be responsible for all maintenance expenses, from garden treatment to costly plumbing issues, if you own your own house.
You lose your adaptability. When you own a home, it’s more difficult to just pack your belongings and move somewhere else. If you do, you’ll need to decide whether to sell it, rent it, or leave it empty. Selling your home could take some time and can be a costly decision.
Also Read: Is It Really The Best Time To Get a Mortgage In The UK?
Making a Decision:
Before making a decision, it’s also a good idea to dig at your investments. Buying makes a lot of sense if you can bear the higher upfront prices.
The final decision on whether to rent or buy is a matter of life planning. You don’t have to live in the house you purchase for the rest of your life, so it’s a better investment if you expect to stay for at least a few years.
Your first-time buyer tale could be the deciding factor in the deal – just try to avoid first time home buyer mistakes.
Our experienced mortgage advisors will walk you through everything from interest rates to deposit criteria, as well as what your monthly outgoings will be with a range of mortgage options.
If you’re hunting for a first-time buyer mortgage and have some doubts or concerns, Mountview Financial Solutions will assist you in determining the right remortgage choices. Call us at 02080950120 for more details or send us an email at info@mountviewfs.co.uk for more information.
