Buying or Renting: Which One is Right for You?

Choosing whether to buy or rent a property can be a challenging decision.

Each option comes with its own set of pros and cons, making it a difficult task to determine which one is right for you. As the rental market is rising by around 5% each year, it’s becoming increasingly expensive to rent. But equally, with mortgage rates rising exponentially, buying a home isn’t exactly the cheaper option. 

In order to help you decide whether to buy or rent, we’ve weighed up both options below. 

What Are the Advantages of Buying a House? 

• Security – When you’re renting, you’re at the mercy of your landlord. If they suddenly decide that they want you to move out, you have no choice but to do so. 

• Freedom – If you’re a budding interior designer, buying might be the better option as you can decorate as you please. Regardless, if you want something ready to move into with no work required, a new build gives you the ideal blank slate. 

• It’s an investment – When you buy a house, your monthly payments are going toward your home ownership. On the other hand, if you’re renting, you’re simply lining your landlord’s back pockets.

What Are the Downsides of Buying a House? 

• It’s a big financial commitment – Buying a house can quite easily eat into your life savings. Even for a modest home, you’ll need to put down a hefty deposit. You’ll also be tied into a mortgage so it’s not a decision to take lightly.

• The property market can change – Your home will usually go up in price, but it can also take a tumble. If house prices plummet, you can be left with a home that is worth less than your mortgage, making it difficult to sell up. 

• Additional costs – When you own your home, if anything should break, you’re responsible for fixing it yourself. This can soon add up if you’re fixing a leaking roof! 

What Are the Advantages of Renting? 

• Flexibility – If you want to move to be closer to friends or family or must relocate for a new job, renting gives you additional flexibility without the rigmarole of selling your home. 

• No need to pay for repairs – If something breaks, you don’t need to worry about fixing it with your own money. Your landlord will take care of repairs and renovations, giving you one less thing to stress about. 

• Better real estate – Home ownership is costly. So, you might have to compromise on the location. When you’re renting, you can usually afford to live in a larger home in a better location. 

What Are the Disadvantages of Renting?

• It’s expensive – Renting costs have been rising exponentially in the last few years, with the rental market showing no signs of slowing. 

• You’ll need to rent for life – If you rent and never buy a house, you’ll still need to rent when you’re retired. 

• Strict rules – Landlords are known to impose strict rules upon tenants. So, you might not be able to live the way you want to. For example, not all landlords allow pets. 

Before you decide whether to buy or rent, think about whether you have enough for a deposit, whether you have the money to pay all the associated home ownership costs, and whether you earn enough to cover the mortgage.

If you answered ‘yes’, then home ownership might be for you. If not, perhaps renting is the better option – for now, at least.