Renting V Buying
Posted on 26 September 2017 by Laura Godfrey
As house prices are at a high, generation rent is becoming more apparent.
The greatest challenge for renters wanting to get themselves on the property ladder is saving for a deposit whilst paying rent, due to home ownership now being the biggest financial challenge for prospective buyers.
It has always been a great appeal to people in the UK to own their own home – as they say “an Englishman’s home is his castle”. However, many people’s attitudes towards renting instead of buying in the UK are changing as it seems to be becoming much less realistic that prospective buyers of all ages will own their own home.
Although in the UK, people strive to become homeowners in other countries in Europe they are more inclined toward renting. Germany and Austria have the highest proportion of people renting a home rather than buying.
There are of course pros and cons to both renting and buyer your home…
On the one hand, if a person buys their own home and has a repayment mortgage, rather than interest only mortgage, their monthly repayments aren't going to a landlord and are investing in their future and creating a valuable asset. Also, at the end of the mortgage term they will own their property outright.
On the other hand renting provides flexibility and allows people to choose where they like to live. Most rental agreements can be ended after 6 months allowing renters to move to a new location.
As a home owner, you can do what you like to your property (within planning and building regulations) and you'll be in direct control of any problems with the property and won't have to deal with agents or Landlords. However, if you rent a property there are no maintenance costs as it is the responsibility of the landlord to maintain the property, pay for decoration and its upkeep.
However, in recent months the pace at which house prices are rising has slowed and this slowdown has provided potential buyers with a bit of breathing space to raise a bigger deposit without having to worry that they risk being priced out of the market if they delay making a purchase.
Posted in: Buying & Selling Your Home