There are many different reasons why you should consider renting a property rather than buying. However, if you think buying is right for you then there is no reason why you shouldn’t purchase a property.
Renting a property is one option for your living arrangements. But it isn’t always the cheapest option. Sometimes it is cheaper to buy than rent a property. However there are many reasons why renting is better suited in some circumstances than other areas.
Renting a property is a great way to live in an area without having to purchase your home; it means that you are not responsible for maintaining the property. The property owner is responsible for the maintenance; however, it will depend on the landlord and the amount of money you are paying in rent as to how the landlord keeps the maintenance updated.
If you do not intend to stay long-term in the area, then purchasing a property is not something you should consider. Most property needs at least 5 years to make a return on the property. It is more viable for you to rent a property than to purchase.
Moving to a new area then it is important that you are aware of the area before you decide the best place to buy; this is why renting in the first instance is the best option for you.
If you are considering buying, a property rather than renting this could have benefits for you long-term. Having investment in a property means that you are building a nest egg for the future.
But it will mean that you will need to have saved up a deposit for the property. This ensures that you are putting some money into your home, since the market crash in 2008, 100% mortgages are not available. There are government schemes, which can help you purchase your home, if you are looking into these, make sure you understand the commitment that you are signing up too.
However, you will be paying a high amount of interest over the course of the loan for your home and if at any time you run into financial problems and struggle to pay your mortgage then you at risk of losing the home that you have tried to maintain over time. With the length of the average mortgage, creeping up to the 30-year mark it is possible that the odds of having financial difficulty at some point of this time could be quite high.
There are valid reasons for and against buying a property and renting, you have to consider your current circumstances and make the right decision as to the best choice for you. Don’t feel pressured into buying a property if you feel at this time that renting is right, it is a big mistake to make if you choose the wrong area or the wrong time to buy and purchase a house when prices are high.