Tue 25 Sep 2018
Jasmine Hopper, Digital Marketing Apprentice
When it comes to the question of whether it's better to rent or buy property, it's like a clash of titans in the opinion polls with people having some very strong views on which the best option is.
Actually, we think that it can depend on many things whether or not it makes sense to rent over purchasing a property, and whilst you may call us biased, these are some of the reasons why renting can be a really smart option:
Try before you buy
Moving to a new house, particularly if it includes a relocation to a new area is a pretty big decision and can be quite upheaval. There's potentially a lot of things going on, perhaps you're also starting a new job which is stressful enough on its own without throwing a need to find your next home in the mix! A great way to get familiar with an area and work out exactly where you want to be based is to rent a property in the first instance in order to discover those things in your own time which will avoid you making potentially very costly mistakes.
Selling a house can be a long process depending on what your position is in any associated chain or waiting for the right buyer to want what you have to sell. Renting provides you with the ability to have far more freedom to relocate where you want, when you want. Committing to a mortgage for a determined period of time is much the same as committing to a defined rental period, but typically a mortgage might be for a minimum fixed period of two years whereas most tenancies start off at a 12-month fixed term; some of course are longer or shorter to suit. Fundamentally, you are not tied down and the task of moving to a new house is limited to serving notice as opposed to any selling costs and legal processes.
Another way that renting provides flexible benefits, is that you might have to shell out another £25k+ to obtain a house that suits a change in family circumstances such as a new arrival, whereas you might be able to move to a larger rented property for an additional £100 per month and avoid purchase fees.
Money Money Money
Of course, money is often is a driving factor in the decision whether to buy or rent with deposits for rental properties being infinitely more affordable than the deposit required to buy a house. (Read our deposit alternative blog here)
If you are renting in order to save money to get on the property ladder, you do not necessarily have to rent the kind of house you dream of buying; for prospective first-time buyers or people planning to "go large", it is an excellent opportunity to organise your budget accordingly to organise your budget accordingly in order to save the required deposit or additional equity.
I Got 99 Problems but Property Maintenance Ain't One!
When it comes to renting a property, any maintenance naturally become the landlord's responsibility, not yours. Waking up in Winter to a defunct boiler and no hot water takes a quick call to the letting agent if the landlord has a fully managed service and they will sort the whole thing out for you and, it won't cost you a penny. Property refurbishment and redecoration due to general wear and tear is also the responsibility of the landlord which is another massive annual cost saving on home ownership. Of course, if you damage the property then you will need to take responsibility for the rectification thereof, though the benefit of that inital deposit means that on completion of your tenancy the agent has the capacity to simply withhold a percentage of funds from this account in line with the tenancy deposit scheme.
If you are interested in renting a property, call our Lettings office on: 0121 445 7410