Buying vs Renting – Which Option Should I Choose?

“Should I rent or should I buy?” is something that a lot of people will ask themselves when they are ready to climb the property ladder. Buying a house or a flat will be one of the biggest financial commitments that you will make, so it’s important that you get it right.

Here we have put together the pros and cons of owning a house, and the pros and cons of renting, to help you make the right decision.

The pros of owning a house

• A good long term investment – Even if the value of the building itself depreciates, the land on which it sits can become more valuable. You are investing in an asset for yourself rather than a property management company.
• Stable monthly payments – With a fixed-rate mortgage, you will be able to pay the same monthly amount until the mortgage is paid off.
• Stability – Buying a home requires confidence that you plan to stay there for several years. You also have the ability to make changes to the property without asking for permission, i.e. an extension or loft conversion.

The cons of owning a house

• The additional costs of buying to include in the process – There will be lots of additional costs of buying a house, which include, but aren’t limited to: mortgage application fees, legal costs from a solicitor, stamp duty, property surveys
• Maintenance costs – If you own your own property, you will be responsible for all the maintenance and upkeep – including plumbing problems, broken radiators, a leak in the bathroom, an overgrown garden etc.
• Less mobility – Whilst owning a property will provide stability, a downside could be that if you were offered an attractive job offer which required you to move to a new location, you would have the added stress of sorting out the selling of the property.

The pros of renting

• Your landlord is liable for repairs – If the boiler breaks down or the roof leaks, all that is required is a call to the landlord to get it fixed for no additional charge.
• You may be able to live somewhere that you could never afford to buy – One of the big advantages of renting is that you may be able to live in an area that you wouldn’t be able to buy in.
• You won’t need to worry about a mortgage – Buying a property is a huge and usually long-term financial commitment, whereas renting saves you the hassle of having to apply for a mortgage.

The cons of renting

• You won’t get a return from the property you live in – As you won’t own the home, you won’t benefit from any appreciation in its value over time.
• Your rent could increase – You’re at the mercy of your landlord when it comes to how much rent you pay – but your landlord must give you a minimum of one month’s notice of any rise if you pay rent weekly or monthly, or six months’ notice if you have a yearly tenancy.
• You will need permission to make any changes – If you want to redecorate, you will need the permission of your landlord first.

We hope that this guide has helped you to choose whether to rent or buy a property. If you have any questions regarding the property process, please just get in touch with the Keystones team today.

About Keystones

Our team of Romford based estate agents are experts in the property market, obtaining a wealth of knowledge to help you find your perfect home. If you require some assistance when searching for or selling your Romford property, contact us today.